Being savvy when it comes to seeking value for your money could save your household over €2,000 annually, according to experts.
New research from Dublin-based business lender Capitalflow shows that Irish consumers' attitudes and habits towards switching service providers is changing for the better, with more people now willing to put in the effort to save a few bob.
According to the research, 91% of Irish adults surveyed admitted to switching at least one service within the last five years. Switching insurance service providers were the most common, while changing banks or mortgage provider was less popular.
Read more: Thousands of Irish households face €200 increase in electricity prices next month
John Lowe of moneydoctors.ie, worked with Capitalflow on the research and said it is "extremely important" that consumer awareness in this area continues to grow. "It is unfortunate that it takes an energy crisis to seriously change consumer attitudes to switching," he said.
"Regardless of income, savings are still savings, and we constantly need to be vigilant in order to find value. It is always worth the effort.”
The research highlights the average annual savings consumers have made when switching services:
- Those who switched mortgage provider cite an average annual saving of €1,094.30, €97.94 for a current account, and €112.20 for a credit card.
- Those who have switched Gas provider saved €189.73, while for heating/electricity it’s €222.21.
- For Broadband the average annual saving was €124.07, and for Digital TV it’s €107.54.
- Finally for Insurance savings are €214.31 for Health, €162.57 for Car and €125.37 for Home.
Here are John Lowe's top four tips for consumers to save money:
Banking
John described banking as "the best place to start when you’re trying to save money". He said: "With the withdrawal of both Ulster Bank and KBC Bank from the market, customers are looking for security and longevity in their new bank, in addition to first class service. It’s also important to shop around and have choice within the market.
“Trust is one of the biggest factors when it comes to money. Whether it’s moving banks, taking financial advice, or sorting out that mortgage, pension or investment, consumers need to be sure of their provider. Do the groundwork but once you are happy with that choice make that move – it really is better for your pocket.”
John added that switching mortgages has become much more common in recent years. "Switching mortgages has now become fashionable, especially as tracker rates are no longer the ‘manna’ they used to be," he said.
"Some of the current mortgage fixed rates are actually cheaper than the recently increased tracker rates –but tracker rates are not finished with further increases expected over the coming months."
He also advised anyone who uses their debit card often should consider switching to a digital bank as their popularity is increasing. "If you use your debit card a lot and have no idea of the fees you’re incurring until your quarterly statement lands, consider switching to an online bank that offers more transparent fees and advanced digital offerings to track your spending," he said.
Internet and entertainment
John explained that because fibre-power broadband is available across the country, it is now an "excellent time" to compare internet providers. He pointed out that there are "huge variations" in the offers that the main providers have available, so it is "worth the hassle" of having someone come out and install new broadband because there are major savings to be made.
John advised anyone looking to switch internet providers to call the company you're considering joining rather than just picking up a deal online. "A deal can often look perfect, until you find out that the broadband speed is slower than what you currently have; or you might have seen something that looks just right, apart from the 160 extra channels you don’t need," he said.
"Where possible, speak to a human – and remember, your money matters, so don’t be afraid to push for the best deal."
Utilities
John recommends that households re-examine their utility bills at least once per year. "Many people enjoy the ease of sourcing their gas and electricity from the same provider – but you could save literally hundreds of euros by switching from a dual-fuel bundle to separate providers," he said.
"Providers are changing their tariffs all the time so be vigilant and recheck."
Make a financial plan
John described creating a financial plan as the "single most important step" for any household looking to save money. "While everything listed above can help with choices already made, a financial plan will guide you in choices yet to come, followed closely by completion of an in-depth budget plan."
He said that anyone unsure about how to make a financial plan can contact moneydoctors.ie for a free budget planner spreadsheet template.
Read next:
- PUP recipients could face paying up to €2,500 in back tax
- The four bonus payments all due during the same week in November
- Parents paying for children's college rent to receive €500 tax credit
- Government approves auto pension scheme set to assist 750,000 workers
- Six lump sum payments people will receive in November
