This week | Slash your overdraft costs, incl 12mths 0%
Used wrong, they're costly. 10 techniques to beat big banks' huge fees Banks have raised overdraft charges for millions in recent years with more hikes to come. If you're in the red, it's crucial to pay the lowest fees possible but also budget to clear the debt ASAP. Here are the 10 key need-to-knows... | 1. | NO overdraft interest for a YEAR, but budget to clear. If you regularly pay for an overdraft, Nationwide's* FlexDirect account is 0% for a year then 50p/DAY. Halifax* gives 6 mths 0% plus a £100 bonus for switching if you pay in £750/mth, with big fees after. Think of them as respite from charges while you try to escape the red for good (see the Budgeting guide to help). | | | | | 2. | Warning - NatWest/RBS/Halifax hitting overdraft users hard. If you're with one of them & are hit by the changes, seriously considering switching:
RBS/NatWest - From 12 July, you'll pay its £6/mth fee, plus 20% EAR interest, for going more than £10 overdrawn (currently the buffer’s £100).
Halifax - On 1 May, it stopped paying £5 monthly interest to Reward Account custs in any month they go 1p+ overdrawn, killing the key boon. | | | | | 3. | Overdrafts are DEBT. If they cost more than credit cards, repay 'em first. Overdraft fees can seem small, but £10/mth is a substantial £120/year, so if you regularly pay they can quickly snowball and dwarf other debt costs (eg, credit cards).
Review ALL debts as a whole - find the most expensive and focus spare cash to paying that off, while keeping up monthly minimums on all else. Full info on the Credit Card Shuffle technique. | | | | | 4. | Spend on a 0% credit card to make your overdraft interest-free. With discipline, this can be cheaper than getting the 0% overdrafts above.
 Step 1: Apply for an interest-free spending card such as Halifax* 0% for 17 months (then 16.9% rep APR) - more options in 0% cards.
Step 2: Use the credit card for all NORMAL day-to-day spending, replacing your debit card, and only make the min monthly payments, so income builds up in your current account and pays off your overdraft.
Step 3: Once your bank account is in credit, stop using the card. Then try to repay before the 0% ends, else switch to a top balance transfer deal then. | | | | | 5. | Got savings? It's scary, but use 'em to repay debts first. It often makes teeth itch, but think about it. A £1,000 overdraft costing £20/month equals £240 a year, but the same in easy access savings, after tax, earns £15 at best. So repay debt with the savings and you're £225 up, and you can then start saving more freely. To beat the fear, read Repay Debt With Savings? | | | | | 6. | Shift pricey overdrafts to a 0% credit card. A money transfer credit card lets you transfer cash into your bank so you owe the card instead. Be VERY careful, most 0% cards don't allow this at 0% and cost a fortune - but currently Virgin* gives 0% for 26 months, for a one-off 4% fee.
You still must pay the monthly minimum or you'll lose the 0%, and plan to clear by 26 months or you'll pay the 20.9% representative APR. It's not straightforward, so read Money Transfers first. | | | | 7. | Get a small, just-in-case overdraft, plus top service. If you've £1,000/mth income, First Direct* gives a £250 interest-free overdraft plus it's got top customer service and new customers get £100 to switch. Be warned, overdraft costs shoot up to 15.9% EAR on £250+. See Best Bank Accs. | | | | 8. | Avoid bank charges like the plague. Everything so far is about charges WITHIN your overdraft limit. Yet by far the most expensive debt is when you exceed this - banks can whack you with £100s/year in charges.
If you've no other choice, borrowing on ANY credit card is cheaper, though minimising spending and sticking to a budget is crucial. Also talk to your bank about extending your authorised overdraft or, if you're in the mire, see our Debt Help guide. | | | | 9. | Fiddle bill dates to suit. Speak to energy, mobile and other utility providers to ask if direct debits can move to the end of your working month, and try the same with council tax, gyms, credit card bills and so on (so if you get paid on the 25th, aim for around the 20th). This artificially boosts your balance so you're in the red less - but it's vital you don't spend the cash elsewhere. If that's a risk, urgently see How to Budget. | | | | 10. | Don't pay for forgetfulness - know your buffer size. Most of the big banks give a 'buffer' of up to £10: if you go into an overdraft by less, you won't be charged - see the Big banks' buffers. Plus some let you sign up for free text alerts which remind you when you need to pay money in to cover payments - great if you need a nudge to stay on top of things. | | |
PS. I'm taking a break this week, so all of this email is in the more than capable hands of the MSE team - Martin. |
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| The Ones Not To Miss | Wed 29 May 2013 |
Balance transfers war - get up to 27 months 0%
There's a ferocious battle between huge banks - take advantage to slash your debt costs Balance transfers let you pay off debts on existing cards with a new credit card so you owe it instead at a cheaper rate. NatWest & RBS upped the ante with 26 months 0% last week, before Barclaycard struck back with 27 mths...  27 mths 0% vs 26 mths 0% - which should you pick? While 27 months is the longest 0% we've EVER seen, Barclaycard* also charges a hefty 3.5% fee of the amount shifted. The NatWest* and RBS* 26mth 0% cards have a lower 2.65% fee. For every £1,000 shifted, you pay a £35 fee with Barclaycard, £26.50 with NatWest/RBS.
If you don't fully repay either within 0% periods, then you pay 18.9% rep APR on what's left - about £16/mth for each £1,000. If you've less than £500 left after 26 mths, NatWest/RBS's probably cheaper, though it's best to transfer big balances again to avoid interest.
- Can repay quicker? Both Lloyds TSB* and Halifax* give 15mths 0% with lower 1% fees (both are 17.9% rep APR after) - cheaper if you repay in that time. Full options, plus Which card’s cheapest? tool in Balance Transfers.
- Check your chances BEFORE you apply. All cards need a credit check. To help, our eligibility checker 'soft' searches your credit file (YOU can see it, lenders CAN'T) so it won't hit future acceptance, then maps your details vs lenders' criteria to show your likelihood of getting most top balance transfer cards (plus see APR examples).
- The golden rules. a) Repay at least the set monthly minimum, or you may lose 0% rate. b) Aim to clear the debt or shift again before the 0% ends, or rates rocket. c) Don't spend on these cards, it isn't usually at the cheap rate.
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| FREE £15 eye test. Click & print this Optical Express* voucher. This & more options in Free eye tests. Monsoon 25% off code & voucher, Burton 25% code, Urban Outfitters 15% off & more...
Burton 25% off code | Monsoon/Accessorize 25% off rare code/vch in £2 mag | Urban Outfitters 15% off code
Boden 20% off code | Ted Baker 20% off code | Robert Dyas 15% off £40 code | Full list: Discount vouchers Last Chance. £20 Shell petrol £10. Buy 4,000 Shell pts worth £20 in petrol for £10. Huge last week. Shell Deals Ends Fri. Pay year upfront for £10.75/mth BT. Its Line Rental Saver* is £129/yr upfront (equiv. £10.75/mth, and it's normally £15.45/mth), rising to £141 on Sat - plus you can do it if mid-contract with BT. But remember BT isn't cheapest and this locks you in for a year. Full best buys in Cheap Home Phones. |
What to do when a loved one dies. New guide
It's tough enough without financial stress too. Find out who to tell, funeral organising, dealing with the estate Our new Dealing with death checklist is designed to ease the load of bureaucratic and financial issues. Here's a glimpse...  - Look after yourself and your family first. Get extra support and grief counselling if necessary.
- If they lived alone, check the property's secure and cancel any daily milk and papers.
- Check if you're entitled to extra cash, incl bereavement allowance & special benefits.
- Ask others to help organise the funeral and get quotes, plus get help with funeral costs.
- If they were the sole owners of any pets, ensure they're looked after.
- Don't feel pressured into spending more on unwanted extras. See funeral director tips.
- Use our key contacts checklist for who to notify, incl utilities, insurance, tax, banks & more.
- If you're sorting their finances you may need a 'grant' to gain access. See tips to help in dealing with the estate. back to top ↑ |
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| Lidl £5 off £30 via Facebook | Aldi £5 off £40 in 50p paper. See Discount Vouchers. Dunelm Mill 20% off sale, Laura Ashley 30% off sale & more...
Dunelm Mill 20% sale Forum Hottie. Homeware, furniture, bedding & more | Laura Ashley 30% online & in-store
Dotty P up to 30% online & in-store | Wallis 25% online only | Full list: High st sales Reminder. 3for1 Soap & Glory trick at Boots. Combine 3for2 & voucher. Mascara, lip gloss & more. Boots Trick £8 kids' summer day camps (RRP £35+). MSE Blagged. Sports coaching, dance. 80 Eng locations. Day camps |
Time to fix? Energy price hikes predicted
If you think they'll come, you can beat 'em by locking in till Sep 2016 - check NOW if it's worth it It's a depressing thought but energy price rises are expected to hit both this year and over the next five years, possibly doubling (see Energy hike fears). Here's how to beat the gloom: | Long term gas & electricity fixed deals | | Fixed until | Exit fee | Cost/yr | | Avg standard tariff (1) | - | - | £1,420 | | Npower Price Fix* (2) | 30 Sep 2016 | None | £1,320 | | EDF Blue* (2) | 28 Feb 2015 | None | £1,190 | | Cheapest variable (2) | - | - | £1,157 | (1) Quarterly billing, dual fuel customer. Source: Ofgem
(2) Monthly direct debit, dual fuel. Varies by region. | - Fix for up to 3 years. The Npower Price Fix* promises no rises until Sept 2016, while EDF Blue Feb 2015's* no-hike period is shorter, but it's cheaper. Neither tariff has an early exit fee, so if a cheaper tariff launches, you can jump ship - though you can't get them with a prepay meter.
Which wins? It's about your attitude to risk of price rises. When EDF's ends, someone with typical bills would've paid £215 less. So Npower's longer deal must save you £215+ in its final 18 mths to win. Who knows exactly what will happen to prices, but Npower gives surety for longer. As our table shows, variable deals are cheaper but bills can rise. - Always compare, get £30 cashback and FREE price monitoring. Your cheapest deal depends on your usage, postcode & current tariff. Our free MSE Cheap Energy Club will compare (both tariffs are in our 'top picks' tab). Switch via it and you get £30 dual fuel cashback (£15 elec only) on top, and it'll monitor your tariff to alert you when to switch again. More cashback options in Cheap Gas & Elec.
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| Forum Hottie. 3,000 free £6 Maybelline mascaras. Do quick 2-min survey - first come first served. Free Mascara Flash 1-DAY 20% off voucher at Benefit, Diesel, Urban Outfitters... (London only). This Thurs, for 100+ West End stores, restaurants and bars. Also incl Adidas and American Apparel. 20% off Covent Garden shops MSE needs YOU. Review our top free UK museums. Love the Biscuit Factory in Newcastle or Devon's House of Marbles? Please tell us - we list 180 free museums & galleries, and want to know what you think of 'em. Free Museums
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"I won £22,000 & New York trip for four"
40+ insider online 'comping' tips. Master the art of entering contests as a cash boosting hobby From cars to cash, 5-star USA holidays to £10,000 of gadgets, MoneySavers have won it all. It's all about 'comping', a potentially profitable hobby for the lucky. Full help in the 40+ Comping Tips guide. But to seduce you...  New biggest reported cash forum win: £22,000. While big success isn't certain, it happens. Last week yummymama smashed forum records: "I'm still in shock. I had a call yesterday to say I had won £22,000, a trip to NYC for 4 and a private Great Gatsby screening. So grateful for this life-changing prize." Read her full story. - You gotta have a system. Comping's about systematically sourcing and entering 100s of the right contests using web gadgets to form-fill at speed, answer Qs & help with tie-breakers. Plus enter TV premium phone comps free via the web. See full list of comping techniques.
- Join the MSE comping team. The site's Competitions Time forum board is full of the latest contests. It's a reciprocal community of devoted compers. The idea is you post contests and cheer others when they win.
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| Get student finance applications in NOW. From England? You must apply by 31 May to get cash for the start of term. Scottish students have till 30 June, but sadly the Wales and NI deadline's already gone. Student loan deadlines
Watch Martin's student finance TV show: Last Fri's final Martin Lewis Money Show was devoted to uni fees. Watch it PizzaExpress 25% off, Burger King 2for1s... Half term restaurant vouchers
PizzaExpress 25% off mains (Sun-Thu) | Burger King 2for1s & more (every day) | Zizzi 20% off (varies)
Prezzo kids eat 'free' (every day) | Crown Carveries 15% off entire bill (Mon-Sat) | See all Restaurant Vouchers 27p for a drink, or two for £1.50... Hmm, really? Check out our fun gallery of your 'bad supermarket offers' tweets. And remember to always double check that special deals actually are special. Supermarket glitch gallery Students - cancel TV licence for summer? If you're going home for the holidays, save £36. Ditch TV Licence
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Restaurant vouchers | Discount vouchers & sales | Top deals |
| The Moneysaving community |
 CAMPAIGN OF THE WEEK
Get scam savvy during Scams Awareness Month
Joint Citizens Advice & Trading Standards campaign gives tips to recognise and report scams. Three million a year fall victim, costing £3.5 billion, but few report rip offs. Find out how to protect yourself and Stop Scams. Related: 25 Ways to Stop Scams. Suggest a campaign: This is for MSE to support work by other charities, groups & campaigners. Send your campaign of the week suggestion. NEW Credit File & Ratings Board
Want to improve your credit score or unsure what it means?
First see our Credit Scores guide to boost your score then discuss it or ask your question in the new Credit File & Ratings Board. BOOK GIVEAWAY
The Little Book of What Men Don't Understand About Women. 25 blagged for MoneySavers. Want one? MONEY MORAL DILEMMA
Should my friend with points on his licence pay more for temporary car insurance?
This week's MoneySaver who wants advice asks... A friend and I are going camping in a few weeks and have decided to share the driving using my car. Problem is, my friend has points on his licence so adding him temporarily to my insurance will cost more than if he had a clean licence. Without the points, I'd have happily gone half and half. Should he pay the lion's share? Enter the Money Moral Maze: Should my friend pay more for insurance? | Suggest an MMD | View Past MMDs CHEAP FLIGHT SALES ALERT
Airline: Aer Lingus Price: From £32.99 Ends: Sat 31 Aug
Our pick this week is Aer Lingus. It's for flights to five destinations in Ireland from 14 UK airports. Prices start from £32.99 and include some taxes and charges. We found flights from London Gatwick to Dublin for £36.99. To find 'em quickly, use FlightChecker on a £50 one-way max search. Extra charges warning: Avoid payment and check-in charges - see Budget Airline Fee Fighting. Related: Cheap Flights, Cheap Hotels, Spending Abroad, Cheap Currency, Travel Insurance THE GREAT HUNT... REVEALED
Your Green Deal tips.
It seems the Green Deal isn't proving popular with early adopters. One forumite reported that while it took time, they did get a new boiler. Others said they began ages ago, but have since been told to wait until funding comes through. THE GREAT HUNT
What I wish I'd known before my wedding
We want MoneySaving couples' pointers for a money-saving wedding. Is there something you learned you wish you'd known earlier? Whether haggling with venues, bagging second-hand frocks or just realising most expensive doesn't equal most special. Share tips/read others': What I wish I'd known before my wedding. Past topics: View all back to top ↑ |
Quick forum tips | Freebies |
Martin's blogs | Martin's appearances 3 June
This Morning, ITV, 11am-12pm.
How to boost your credit score. | | |
MSE team corner - Team appearances:
- Dan Plant: Moneybox Live, Radio 4, 3pm-3.30pm. Holiday money saving.
| Board of the week The Disability & Dosh Board Share advice and tips on MoneySaving issues that impact those with disabilities. Discussions include Where can I get a new Blue Badge timer disc from?, Care home cost confusion and Paying VAT on items for a group of disabled people?. | Cheap travel money |
This week's poll: Would you own up if undercharged? Supermarkets and other shops often get it wrong, whether by giving you too much change or undercharging you. But are you honest when it happens to you, and would you change your mind depending on the store?
Let us know which of these deliberately stark options you'd choose. If it's an independent store If it's a big chain (eg, supermarket) | Poll results When will interest rates rise?
Over two thirds think interest rates will go up between 2014 and 2017.
- just 7% think they'll rise in 2013.
- 21% in 2014.
- 26% in 2015.
- 25% in 2016-17.
- 2% think they'll never go up.
9,002 voted. See the full results. |
Question of the week Q: If a microwave is within its 12-month warranty and it's faulty, should the store send it away for repair or provide a new one? Alice, by email. MSE Helen S's A: First check whether your warranty is provided by the store or by the manufacturer. Most electrical manufacturers include a 12-month warranty, but you may have bought a separate one in-store. Your statutory rights say the microwave should be of a 'satisfactory quality' and last a 'reasonable length of time'. Within six months, you can usually take goods back to the store and choose a refund, repair or replacement so no need to invoke the warranty. If longer, it's trickier to prove, so go for the warranty. If you do that, check the terms to see if it offers repair, replacement or a refund as standard. You often need to have registered the appliance at the outset for the warranty to kick-in. See the Give Me My Money Back guide for more info. Please suggest a question of the week (we can't reply to individual emails). |
 Archna's free game of the week: Brain Drain |
Who edits Wikipedia? Whether you want to know how many episodes of Some Mothers Do 'Ave 'Em have been made (22), or fancy learning a random fact (eg, women in Sierra Leone got to vote in 1930), Wikipedia probably has an answer. But have you ever wondered who edits the 4,239,967 articles and when? This map reveals all: Wikipedia Recent Changes Map. We hope you save some money, Martin & the MSE team |
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