Shop around and you can still save £thousands

Moneyextra.com's latest quarterly review of financial services highlights the savings available just by making the right financial decisions.

The total annual savings available by replacing near-worst with near-best products across a range of financial services is now £3,363.84. That's well down on the savings available earlier in the year - in fact it's £1,231.02 less than the savings you could have made in the first quarter of 2008.

Most of the shortfall is covered by a near doubling in the arrangement fees being charged by the most competitive mortgages. But even though mortgages have been getting more expensive, shopping around for the right one still pays dividends.

Robin Amlôt of Moneyextra.com comments, "Mortgages aren't cheap and lenders aren't fighting for our custom in the way they used to but you could still save yourself almost £2,000 a year just by making the right mortgage choices."

Elsewhere, the potential savings on credit cards have been squeezed by renewed competition among credit card issuers. Robin Amlôt adds, "We're no longer being bombarded by blizzards of mailshots - card issuers are fighting each other for profitable customers who won't default on their debt."

"Despite three cuts in the base interest rate, you still need to keep an eye on your savings - there's a 3% spread between the top and bottom of the ISA tables. But there's good news for those seeking term life insurance - it's getting cheaper all round with both near worst and near best costs coming down this quarter."