Dust off your finances and save £5,000

It's not our homes we should be spring cleaning but our finances, according to research from the price comparison service Moneysupermarket.com.

By switching their existing financial products to better-value providers, a typical family could save more than £5,000 in a year.

Moneysupermarket is just one of a host of comparison services that can help you brush the cobwebs off your financial affairs and source the cheapest products and services.

As your mortgage is likely to be your biggest monthly expenditure, this is a good place to start for big savings - especially if you are languishing on your lender's standard variable rate (SVR) of interest.

Remortgaging is a fairly simple process, and the number of low fixed-rate deals on the market is increasing. Opt for one of these, and you could make considerable savings.

For example, homeowners on the Woolwich's SVR of 7.39 per cent might try moving to Yorkshire building society, which offers a two-year deal fixed at 4.79 per cent.

Next up, take a look at the rate on any personal loans you have.

Despite recent base rate rises - to the current 5.25 per cent - there are still some good deals to be had. There are at present six loans on the market charging an annual percentage rate of less than 6.5. These include products from Masterloan, Barclaycard and Moneyback bank.

Based on a £7,000 loan taken out over five years, a typical family could save nearly £170 in interest payments in just one year, according to Moneysupermarket.com, if they were to switch from a Lloyds TSB - with a typical annual percentage rate (APR) of 10.9 - to a Moneyback Bank loan, with an APR of 6.4.

Next up, try your savings. If you have money squirrelled away with one of the big four banks - HSBC, Lloyds TSB, Barclays or Royal Bank of Scotland - chances are you'll be earning little interest in a poor-paying account.

For example, if you had £10,000 saved up in the RBS instant access savings account (which pays 1.85 per cent) you would earn only £185.04 in interest over a year. Switch this to Alliance & Leicester's direct saver account and you'd be getting 5.8 per cent, or £579.86, over the same period - nearly £400 more.

Don't forget to review your gas bills and general insurance premiums too.

Of course, all this work takes time but it should be worth your while - a few hours of graft can turn into a goldmine.

PROMOTED VIDEO
News
videoJapanese prepare for the afterlife by testing out coffins
Arts and Entertainment
Harrison Ford attends Blade Runner at Target Presents AFI's Night at the Movies at ArcLight Cinemas on 24 April, 2013 in Hollywood, California
film... but Ridley Scott won't direct
Sport
Hughes is hit by a bouncer from Sean Abbott
cricketStephen Brenkley on batsman's tragic flaw that led to critical injury
Sport
Dejected England players applaud the fans following their team's 3-0 defeat
football

Extras
indybest
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Langley James : IT Support; Helpdesk, VMware; Manchester, £18k

    £16000 - £18000 per annum: Langley James : IT Support; Helpdesk, VMware; Manch...

    h2 Recruit Ltd: Business Development Manager - HRO - £70k+ ote

    £35000 - £450000 per annum + £3k car, £70k ote: h2 Recruit Ltd: Do you want to...

    Citifocus Ltd: Newly Qualified Accountants - Risk Mgmt

    £Attractive Package: Citifocus Ltd: Prestigious financial institution seeks to...

    Citifocus Ltd: Operational Risk Analyst

    £Negotiable: Citifocus Ltd: Experienced operational risk professional with ban...

    Day In a Page

    Homeless Veterans Christmas Appeal: Drifting and forgotten - turning lives around for ex-soldiers

    Homeless Veterans Christmas Appeal: Turning lives around for ex-soldiers

    Our partner charities help veterans on the brink – and get them back on their feet
    Putin’s far-right ambition: Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU

    Putin’s far-right ambition

    Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU
    Tove Jansson's Moominland: What was the inspiration for Finland's most famous family?

    Escape to Moominland

    What was the inspiration for Finland's most famous family?
    Nightclubbing with Richard Young: The story behind his latest book of celebrity photographs

    24-Hour party person

    Photographer Richard Young has been snapping celebrities at play for 40 years. As his latest book is released, he reveals that it wasn’t all fun and games
    Michelle Obama's school dinners: America’s children have a message for the First Lady

    A taste for rebellion

    US children have started an online protest against Michelle Obama’s drive for healthy school meals by posting photos of their lunches
    Colouring books for adults: How the French are going crazy for Crayolas

    Colouring books for adults

    How the French are going crazy for Crayolas
    Jack Thorne's play 'Hope': What would you do as a local politician faced with an impossible choice of cuts?

    What would you do as a local politician faced with an impossible choice of cuts?

    Playwright Jack Thorne's latest work 'Hope' poses the question to audiences
    Ed Harcourt on Romeo Beckham and life as a court composer at Burberry

    Call me Ed Mozart

    Paloma Faith, Lana del Ray... Romeo Beckham. Ed Harcourt has proved that he can write for them all. But it took a personal crisis to turn him from indie star to writer-for-hire
    10 best stocking fillers for foodies

    Festive treats: 10 best stocking fillers for foodies

    From boozy milk to wasabi, give the food-lover in your life some extra-special, unusual treats to wake up to on Christmas morning
    Phil Hughes head injury: He had one weakness – it has come back to haunt him

    Phil Hughes had one weakness – it has come back to haunt him

    Prolific opener had world at his feet until Harmison and Flintoff bounced him
    'I have an age of attraction that starts as low as four': How do you deal with a paedophile who has never committed a crime?

    'I am a paedophile'

    Is our approach to sex offenders helping to create more victims?
    How bad do you have to be to lose a Home Office contract?

    How bad do you have to be to lose a Home Office contract?

    Serco given Yarl’s Wood immigration contract despite ‘vast failings’
    Green Party on the march in Bristol: From a lost deposit to victory

    From a lost deposit to victory

    Green Party on the march in Bristol
    Putting the grot right into Santa's grotto

    Winter blunderlands

    Putting the grot into grotto
    'It just came to us, why not do it naked?' London's first nude free runner captured in breathtaking images across capital

    'It just came to us, why not do it naked?'

    London's first nude free runner captured in breathtaking images across capital