Top 10 useless financial products, reveals Which?
People could be wasting thousands of pounds on financial products they simply don't need, says consumer champion Which? Money Quarterly.
Experts from the money-saving magazine revealed the top ten money products that are usually useless and in some cases, can leave you out of pocket or stuck with a poor credit rating:
Mobile phone insurance: Most people are already covered by their home insurance
Cost: Up to £100 a year
Extended warranties: These are too expensive to ever be worthwhile
Cost: Up to half the cost of the product itself
Structured products: Can be confusing, complex and costly - put your money into an Isa
Cost: Can be significant - around 6,000 people with a ‘structured product' were left with nothing when Lehman Brothers collapsed in 2008
ID fraud cover: Most losses will be met by your bank
Cost: About £70 a year
Payment protection insurance: Choose income protection, and avoid over-priced PPI
Cost: Adding PPI to a £7,500 five-year loan could cost you an additional £2,000 - £3,000
Secured loans: Are risky - only take out unsecured loans
Cost: You could lose your home if you are unable to repay the loan
Store cards: Have high interest rates - try a Which? Best Rate credit card instead
Cost: Maintaining an average balance of £1,000 on a store card at 29.9% would cost you nearly £300 in interest over a year
Debt management plans: Ditch this expensive product and get free debt advice from CCCS, the National Debt Line or your local Citizens Advice Bureau
Cost: Thousands over the medium to long-term
With profits: Can incur high charges, so invest your money in stocks and shares Isas
Cost: If you'd invested £500 a year in a full-cost with-profits endowment over the past 10 years, you could have actually lost money, ending up with as little as £4,892
Packaged accounts: Often not worth the money, so replace with a Which? Best Rate current account
Cost: Up to £300 a year- a needless cost if you don't use the extras and benefits of the accounts
James Daley, editor-in-chief, Which? Money Quarterly says: "Our research found that there's a bunch of financial products on the market that most people really don't need - but this doesn't stop companies from trying to sell them.
"Don't just follow what a salesman says - do your own research, speak to an independent financial adviser if you need expert help and make an informed decision about which financial products are right for you."