Have you ever put off switching a financial product from your current provider because it seems like it’s not worth the effort to change?
If so, you’re not alone. A recent survey conducted by a leading price comparison site shows that, when it comes to switching financial products, many people simply don’t bother.
However, in many situations, you could end up saving money by switching one of these products.
Read on to discover the most common financial products Brits aren’t switching, and how you could make a saving by doing so.
Current account or bank account
Switching your current or bank account can come with a wide variety of benefits, so it may surprise you to know that only 54% of people have done this.
When you first switch, some providers may offer you a limited period of cashback on any purchases you make. Some banks also offer a cash incentive to you to switch.
You may even be able to get access to better overdraft features with a different current or bank account provider. If you are often dipping into your overdraft, you may benefit from a provider that offers reduced fees or even an interest-free overdraft for a certain amount of time.
Switching has never been easier either; you will likely receive a “switch guarantee” when you change current or bank account. This means that your new bank will transfer over your balance for you, all in the space of seven days.
Broadband
Many broadband providers offer very competitive introductory rates for the first one or two years of service. Despite these attractive offers, only 37% of people have switched to a different provider.
In this day and age, fast internet speeds are essential. By switching to another broadband provider, you could increase your internet connection speed, all while getting a much better deal.
You should take note, however, that if you have a minimum term with your current provider and you’re still within that term, you may not be able to switch without facing exit fees.
Savings account
Making sure your savings account has competitive rates of interest is vital for keeping up with inflation. Considering how important it is to make your cash work harder, it seems strange that only 37% of people have switched savings accounts.
It may be worth reviewing your reasons for saving in the first place. If you are saving for a house deposit, for example, it may be worth considering a Lifetime ISA, as you can receive a government bonus up to the value of £1,000 each year.
Making sure you are getting the best possible rate of interest on your savings can boost your wealth – even just improving your rate by 0.5% on £30,000 of savings will see you earn £150 a year more in interest.
Credit card
Switching credit card providers can be a great way to save money or receive additional perks, but many people are unaware of this since only 35% of people have reportedly made the switch.
Lots of credit card providers offer introductory rates when you first sign up – a limited period of 0% interest, for example, is a common introductory deal. Others may offer lower rates for balance transfers, reducing the interest you’ll pay on any outstanding balance you have.
Consolidating debt, which is simply moving debt from multiple credit cards to just one, may also be worth switching for. Not only does it make it easier to see how much you owe, but it also makes budgeting and repayments much simpler to deal with. You may also benefit from a lower interest rate on your total borrowing.
Mobile phone
Only 35% of people have reportedly switched mobile phone providers. However, it is easier than ever to do, and you can even keep your old mobile number when you switch.
Switching mobile providers comes with a myriad of benefits too. You could reduce the amount of money you spend on your contract each month – this is especially useful if you aren’t using all of your monthly allocated data. Different mobile providers may also give better signal in certain areas of the country, so it could be worth switching for this reason too.
It’s worth keeping in mind that longer contracts, such as 12 or 24 months, may save you some money in the long run, but you will need to stay with them for longer periods of time unless you want to face exit fees.
Landline
You may think landlines are obsolete technology but, according to Which?, they still accounted for 44 billion minutes of call time in 2018. However, only 32% of people have reportedly switched their landline even though savings can be made by moving to a new provider.
If you barely use your landline, it may be worth switching to a pay-as-you-go deal. This means you will only pay for any calls you make – this deal is perfect for those that don’t use their landline often.
Or, if you are still relying on your landline to make calls, you could consider an unlimited deal. These give you, as the name suggests, unlimited calls at any time.
Switching is simple too – all you need to do is contact your provider, tell them you are planning on switching, and they will guide you through the process. Many providers also offer a 14-day window from the day you enter your contract to cancel your request without being charged.
Home insurance
If you have been with your home insurance provider for a while, there’s a good chance you’ll be able to cut your premium costs by moving to another insurer. It may shock you, however, to hear that only 19% of people have reportedly made this switch.
There is strong competition in the home insurance sector, and so using an online comparison service can help you to easily compare the costs of cover. You may well find that there are cheaper options than simply renewing your policy with your current insurer.
Switching is relatively simple too, as once you have compared different deals and decided on the one that best suits you, all you need to do is inform your old provider you are switching.
Mortgage
Remortgaging involves moving your current mortgage from one lender to another to get a better deal. However, only 19% of people have taken advantage of this.
When you first get your mortgage, you will most likely choose a fixed, tracker or discounted rate for the first two to five years. When this deal ends, your mortgage will usually revert to your lender’s standard variable rate (SVR). By remortgaging, you could once again take advantage of lower introductory deals offered by lenders.
In fact, according to Experian, switching to a new fixed-rate two-year offer could save borrowers around £5,000 on mortgage payments. Before remortgaging, however, you should double-check you aren’t tied into a deal with your existing lender.
Alternatively, by switching to a more flexible mortgage, such as an offset mortgage which links your mortgage to your savings account, you may be able to reduce the total amount of interest charged and pay your mortgage off quicker.
Pet insurance
You may have noticed that your pet insurance premiums have been rising. While this may be due to your pet getting older, there may be other factors at play. Finding a better deal could save you money in the long run, but only 14% of people have reportedly made this switch.
Some pet insurance providers offer introductory discounts – if you have been with your provider for a while, there’s a chance that your introductory rate has ended, pushing up the cost. This is why you should shop around for new pet insurance providers; you may be able to find a better deal or take advantage of a new introductory offer.
You should be aware that if your pet has a previous health condition, it may be worth sticking with your current insurance provider. This is because many providers are hesitant to cover pets with pre-existing health conditions.
Get in touch
If you want to find out if you could save some money by switching products, especially your mortgage, email enquire@london-money.co.uk or call (0207) 808 4120 now to find out more.
Please note
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. Think carefully before securing other debts against your home.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.