To reveal the Hints & Tips tailored for you please select the product areas below.
SAVINGS
- USwitch research has found that 22m savers are unaware of the rate they are being paid (uswitch.com - 8th April 2009). Keep an eye on the interest rate that is paid on your savings. As these can change rapidly you may no longer be getting the good rate you thought you were. Also consider any bonuses or withdrawal penalties that apply.
- Keep on top of how your savings and investments are performing. Look for poorly performing funds and investments that you may have and check whether this is still the right place for your money. For example, replace low-performing investments with funds that give a better income.
- Track down forgotten assets. There are more than £10 billion of unclaimed funds in dormant bank accounts, overlooked insurance policies and mislaid investments. Visit www.mylostaccount.org.uk for a free search for missing cash across all UK banks, building societies and in National Savings. The Association of British Insurers (www.abi.org.uk) can help identify historic pension and insurance companies that have been taken over. And for £25 the Unclaimed Asset Register, operated by Experian, will run a search across a company pensions and savings companies. Visit www.uar.co.uk for more details.
CURRENT ACCOUNT
- When spending on plastic abroad, watch out for Dynamic Currency Conversion. This is when overseas retailers convert purchases into sterling instead of using the local currency and charge a fee of up to 4% on top of any bank charges. Always insist that the local currency is used or pay in cash instead.
BORROWING
- Personal loan debt has risen by £1.6 billion compared to the same time last year but you can reduce the costs of this type of borrowing (unbiased.co.uk - 25th March 2009). Consider switching personal loans mid-term. Even if you were fortunate enough to get a "best buy" loan when you took yours out, a year down the line the rate might not seem so attractive. Most people think you can't switch to a new personal loan mid-term but this is not the case. If you think you could get a better deal than your current one, think about switching.
- Brits with the average outstanding balance on their credit cards could save £443 by switching annually (thethriftshopper.co.uk - March 2009). However, don't forget to cancel those you don't intend to use again. If you don't, the credit card company may exclude you from special deals in the future because you're already a customer.
MORTGAGES
- Consider offsetting your savings against your mortgage. This can reduce the term and the amount of mortgage interest you'll pay.
- Brits repaid a record £8bn of mortgage debt in Q4 2008. If you are overpaying your mortgage, make sure your lender charges daily interest rather than annual. Otherwise you'll have to wait 12 months for the over-payments to take affect.
PROTECT AND INVEST
- 24% of people read and file their insurance renewal documents rather than shopping around (gocompare.com - January 2009). Make it an annual ritual to check you are getting the best deal on your insurance policies. Maybe when you were sold a policy you didn't get the time to shop around and you could be paying too much or if your family circumstances have changed your policy may no longer be suitable.
- Choose cheaper breakdown insurance. The AA and RAC dominate. But being towed home is just another form of insurance like any other. Shop around.
- Give money away to save tax. All gifts made more than seven years before the donor dies are free of Inheritance Tax. Speak to a financial adviser more information.
- If your annual holiday insurance policy is about to expire and you don't have a holiday booked, DON'T renew it. You wouldn't have car insurance if you didn't own a car. Simply restart the cover again the next time you book a trip and shop around to get the best deal available then.
- Think twice about cancelling your life insurance to save money. It may cost you more to reinstate insurance at a later stage because many premiums are linked to age, and you probably will not be able to get the same level of cover. Critical illness insurance started today, for example, covers fewer illnesses and medical problems than policies first taken out a decade ago.
- Track down forgotten assets. There are more than £10 billion of unclaimed funds in dormant bank accounts, overlooked insurance policies and mislaid investments (thisismoney.co.uk). The Association of British Insurers can help identify historic pension and insurance companies that have been taken over.
- With the average house now worth £188,991 (source: Department for Communities and Local Government, May 2009), more families will now be liable to pay Inheritance Tax than ever before. By getting tax planning advice you can make your will more tax efficient.