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Earn yourself an extra £7,000 a year by choosing the right financial products and services, says Moneyextra.com
January 31st, 2007
Moneyextra.com's latest quarterly review of financial services highlights the massive potential for savings available just by making the right financial decisions.
The total annual savings now available by replacing near-worst with near-best products across a range of financial services is £4,678.601. Despite an environment of rising interest rates, there are still savings to be made on debt products as well as better returns to be had on deposits and savings accounts.
Robin Amlôt of Moneyextra.com commented, "Putting that net figure back into your hands in terms of after tax income is the equivalent of an increase in gross earnings for a basic rate taxpayer of almost £7,0002 a year!"
Making sure you have the right mortgage is the cornerstone of a fitter, fatter wallet, with the potential savings from the right decision here accounting for 68 per cent of the total savings to be made. In other debt products, making sure you have a competitively priced personal loan and the right credit card could save the average person more than £825 a year.
Those with savings could find themselves more than 10 times better off! With £5,000 in an instant access savings account, the difference between near worst and near best accounts is £257 in interest - more than 10 times the £25 being offered at the bottom end of the scale.
Elsewhere, Moneyextra.com's figures also show term assurance has continued to get cheaper. The potential savings on a 25-year £110,000 policy for a couple aged 34 having risen to £147.60 from £141 a year earlier and £82.08 two years ago.
For further information, please contact:
Robin Amlôt
Senior Editor, Moneyextra
Tel: 0870 191 5626
public.relations@moneyextra.com
NOTES TO EDITORS
1Moneyextra's Potential Savings Q1 2007
| Financial Service | Criteria | Poor* | Best* | 12 month saving |
|---|---|---|---|---|
| Mortgage | £120,000 interest only | £725.00 | £459.35 | £3,187.80 |
| Credit Card | £2,600 balance over 1 year | £481.00 | **£52.00 | £429.00 |
| Personal Loan | Borrowing £9,000 over 5 years | £205.17 | £172.14 | £396.36 |
| Savings Account | £5,000 instant access | £25.00 | £282.00 | £257.00 |
| Current Account | £1,000 in credit | £1.00 | £61.00 | £60.00 |
| Travel Insurance | Annual, global, couple under 65 | £230.34 | £85.00 | £145.34 |
| Term Assurance (monthly) | £110,000 over 25 years, couple age 34 | £26.73 | £14.43 | £147.60 |
| Cash ISA | £3,000 instant access | £111.00 | £166.50 | £55.50 |
| Total Savings | £4,678.60 | |||
* Mortgage, card and loan figures based on average Moneyextra.com site usage during February 2006. The mortgage figure is based on difference between normal monthly payments and excludes any related fees. Card savings assume minimum monthly repayment is made. Potential savings in subsequent years may differ.
** Balance transfer fee only.
Products quoted are examples of 'near' worst to 'near' best products matching the criteria but always available nationwide without restriction and are from a similar target market. Full details of criteria used and of products quoted and rates of interest charged/offered are available on request.
2£4,678.60 net grosses up to £6,982.98 with 11% National Insurance and 22% basic rate tax added back.