Spring clean your finances and save thousands
Switching household bills can save over £1,000, but switching main financial products such as mortgage and current accounts could save over £3,500.
The analysis from the comparison site shows that spending time reviewing all of your personal finances could save over £3,500 over twelve months.
Clare Francis, site editor at MoneySupermarket, said: "The combination of rising living costs, lack of pay increases, and taxation and benefit changes has really put pressure on household budgets. Now, more than ever, every penny counts. As well as watching everyday spending, households should make sure they get the best value from all their financial products, ensure they're not paying over the odds, whilst also maximising the benefits these products can bring. For example, the current average UK savings rate is just 0.31 per cent, while the market leading easy access deal pays ten times that amount.
"Sitting on average rates in the current climate doesn't make sense - those who take control of their finances and make their money work harder will see a real benefit from their actions.
"The area where often the biggest saving can be made is your mortgage, but remortgaging this won't be relevant for everyone. However, there are still ways to free up a sizeable amount of money. Switching to a cheaper credit card or personal loan and making sure you are getting the best deal on your home and car insurance can result in a significant saving over the course of a year."
Mortgages - Saving £1,974.98
A recent MoneySupermarket poll found one in four (26 per cent) consumers had benefited from lower mortgage repayments due to a record low base rate. Despite indications that base rate will remain low for the foreseeable future, many consumers can take advantage of record low mortgage rates now. For example, someone with a £150,000 mortgage on the market average standard variable rate (SVR) of 4.83 per cent could save themselves £1,974.98 a year switching to a two year tracker mortgage from First Direct (£1,499 fee) at 1.99 per cent.
Credit cards - Saving £269.46
Those unable to pay off their credit card debt quickly and looking to spread the repayment costs over a period of time should ensure they move their outstanding debt to a zero per cent balance transfer card, to save hundreds of pounds in interest. Moving the average credit card balance of £2,047 from the current average rate of 18.4 per cent APR to the market leading 22 month Barclaycard Platinum card would save £269.46 (taking into account the balance transfer fee). MoneySupermarket has a SmartSearch credit profiling tool which matches applicants against the products they are most likely to be accepted for without leaving a mark on their credit file.
Personal loans - Saving £220.80
A personal loan allows consumers to make fixed repayments over a set period of time, ideal for anyone looking to budget. Many new loans are only available to existing current account customers but, consumers should take the time to shop around to make sure they are getting a good deal for their circumstances. If someone had a loan for £5,000 over five years with an average rate of 15.95 per cent APR, and swapped to the market leading Derbyshire Building Society loan at 7.8 per cent APR, an annual saving of £220.80 could be made.
Current accounts - Earn £50.25 in interest, or save £212.50 on overdraft charges
There are also substantial savings to be made for current account holders. For example, someone holding £1,500 in an account with an average high street rate of 0.65 per cent could gain an extra £50.25 by switching to the Halifax Reward current account which pays a £5 bonus each month if you pay in £1,000. Consumers who rely on their overdraft will also find they can save £212.50 by switching to Santander's Everyday Account as it offers an overdraft rate of zero per cent for four months, after which you will be charged 50p per day to a maximum of £10 per month for an authorised overdraft of £1,500.
Car and home insurance - Save on average £501 on home and motor
While insurance is essential for financial security and peace of mind, and with car insurance being a legal requirement, it's important people only opt for cover that meets their needs. By following a few simple tips, you could see some significant savings on your home and car insurance. Shopping around for cover is essential, especially at the point of renewal to ensure you're getting the best value policy for your money. Additionally, paying annually for cover instead of monthly could cut the cost of your premium, and for car insurance, by adding a partner, or if you are a younger driver, adding an older driver to your policy could also help cut the cost.
There are some great savings to be made if people ensure their insurance is the most competitive available. On average, consumers who use MoneySupermarket.com to switch their providers can save £375 on car insurance and £126 on home insurance.
Utilities - Save £224
For those looking to save money on their energy bills, shopping around to ensure you are on the correct tariff for your usage and region is crucial. Moving online to a ‘dual fuel' direct debit deal is the easiest way to make savings; by switching to the best online tariff as opposed to the average standard quarterly cash and cheque (QCC) tariff, customers could save on average £224 over twelve months.
TV, phone and internet - Save £125
Bundling your TV, phone and broadband together rather than taking out standalone products could save you £125 a year, and in addition to this you would also benefit from the ease of dealing with one provider rather than three.