The use of online research has empowered consumers like never before. This is especially true for the area of finance which for years was ruled by the status quo and thrived on the difficulties of consumers to understand various products, financial services and the offers that were available to them. This buying guide provides some general top tips but it is very important in all aspects of finance to read the 'small print' very carefully. If you are in any way unsure about a financial product then seek expert independent advice. It is your money and this guide provides some initial tips to help you start exploring the huge variety of products available in the market.

• Use the huge amount of information available on the internet to research before deciding which product or service to use. The amount and quality of information available is better than ever before and it is easy to understand and research all aspects of financial planning online. However be aware that the volume of information can also make it appear more daunting than it need be. With a little patience you will soon find which sites to trust and provide useful information to help with your financial research.
• Once you've completed your research use a comparison service like Cubalaya to look at a variety of offers to ensure you are getting a good deal. Note that all comparison services need to make money to keep their services running so you will never get every single offer in the market, however nobody can dispute the fact that looking at a number of offers at the same time is a great way to get a good understanding of what is a competitive offer in the marketplace.
• Always read the small print. If an offer looks too good to be true then chances are it is. Most financial services and products come with lots of terms and conditions and it is worth reading these carefully to fully understand all charges and penalty clauses. You may think you are saving money when in reality you will end up paying a lot more. One good example of this is if you try to move to a new mortgage before your initial term is complete, you usually incur an additional penalty charge or if you try to repay a loan early you can often get an additional charge.
• Products and services can be complicated and even after researching them fully online you can still feel a little unsure. This may be the time to consider talking to an independent financial advisor or phoning an expert to get clarification. Once you fully understand the product you can get back to comparing online to choose the best deal for you, note that even 'independent' financial advisors get paid commission on products they sell to customers!
• Common sense is your best ally when dealing with all financial matters. Simple calculations to estimate the impact of worse case scenarios can help you plan and prepare for any future problems. For example if you take a fantastic mortgage that gives you a guaranteed low rate of interest to repay for the first year but then puts you on a standard market rate for a further 3 years what will your repayments look like if rates go up 2% from today's base rate. People usually calculate on a stable rate at today's level but history has shown that rates can go up quickly and you should be prepared for this.
• Don't put all your eggs in one basket. This is sound advice that most people with any experience will freely give. If you are saving for your future it makes sense to put money into a pension scheme but many people over the last 10 years have found investing in property as a successful alternative. There are many ways to develop a balanced portfolio but remember nothing is guaranteed and everything comes with risk, spreading that risk is generally a good strategy.
• Effort is rewarded. Like many things companies rely on customers staying with their product or service because the effort to research and make a change is too great. A great example of this is car insurance. Most standard policies run for one year at a time and insurance companies will provide good prices to gain a new customer. However by auto renewing for additional years you usually miss out on the best rates available.

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• Always start by analysing how you will realistically use your card. Analyse how you have used your credit cards for the last 12 months. DO NOT fool yourself into thinking you will pay it off in full every month if you have been unable to do this consistently in the past. You would be better considering a deal that is going to work for the way you use it.
• It is advisable to start with a manageable credit limit that can then be extended if required. These can range from a few hundred pounds to tens of thousands.
• One key advantage of using a credit card is the additional protection you can obtain on purchases. Check the detail of your particular credit card to see if there are any special terms and conditions. This is why this is a very popular payment method for online shopping where consumers enjoy the extra insurance provided.
• Look carefully at the loyalty or promotional offer and choose something that benefits you. Taking a card that offers 0% interest on a transferred balance and then transferring a very low amount may be less beneficial than a card that offers cash back for money spent?
• Most credit cards now allow you to create an online account so you can login anytime to check your balance and make payments making it easier to stay in control and manage your card.
• Even if you don't think you need a credit card it may be worth considering one and clearing the balance in full every month. This means you can build up benefits like reward points, air miles, cash back and take advantage of other benefits like insurance on purchases or emergency cover on travel at no cost. If you are sure you will clear the balance every month it can pay to take a card that charges a higher rate of interest but offers lots of benefits that you can use.
• A good credit card is very useful if you travel abroad. Most cards will provide additional services and protection that can be very beneficial when paying for travel and accommodation. They can also be used to get quick access to cash if required.

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Top Tips
• Compare loans by looking at the APR (annual repayment rate) but make sure all loans compared are with or without the repayment insurance fees to get a true like for like.
• Look at additional features such as a payment break or holiday that allows you to skip a payment or two.
• Check to see if there are any penalties if you try to repay the loan early. This may be in the form of a one off charge.
• Note the difference between a secured loan and an unsecured loan. A secured loan is usually easier to obtain and for larger amounts as the lender will ask you to provide security against the loan. This usually takes the form of your property even if you are still paying the mortgage. Therefore if you are unable to repay the loan which will be for an agreed term, at an agreed rate of interest paid monthly you are at risk of losing your home.

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Top Tips
• Research and understand the different types of mortgages available in the market. There will be one that will be more suited to your personal requirements and can make a significant difference to your plans in the short and long term.
• If you take a variable mortgage calculate the repayments if the interest rates increase significantly so you understand if you will be able to make the repayments. Whilst you may think interest rates are stable a 1% increase can lead to large additional repayments each month because the sums of money borrowed for mortgages are so large.
• Most Mortgages are for a 25 year term and paid back monthly. It is worth making calculations to see how much the monthly payments will be if you pay the mortgage back over a shorter term such as 20 years. This will lead to considerable savings on the total interest repaid over the lifetime of the mortgage.
• Check for additional benefits in your mortgage contract. Popular incentives include a mortgage holiday option where the lender will allow you to take a short break on repayments if required. Other mortgages will allow you to make additional payments of any amount against the money borrowed whereas some limit you to how much you can pay back to ensure a higher sum is charged in interest. Also you may be able to get a better deal on home buildings and contents insurance as part of a deal when you take your mortgage although you should also be very careful not to take the first cover offered by the lender as consumers often take this for administrative ease only to find they could get a much cheaper deal with another insurance provider.
• Note that although there may be some more attractive deals on offer you may not meet the lending criteria of the lender. Quickly get an understanding of the criteria so you don't waste time applying for mortgages that you can't obtain.

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• If you need quick access to your savings, ensure there are no penalties for withdrawing money. Many savings accounts offer good rates of interest but with limitations such as only withdrawing money if 30 days notice is given, or ensuring at least a certain amount of money is always in the account. It can sometimes be better to take a slightly lower rate of interest but have quick access to your money for emergencies.

Top

• In today's competitive market consumers have a lot of choice about who they use for their financial services and day to day banking. It is no longer true that you need to bank with one establishment all your life but it still remains common that consumers don't change banks very often due to the administration. Online banking has made it even easier to sign up to a new bank and enjoy a better service or benefits to suit your needs.
• Look out for special incentives to open accounts; these are common for students as banks try to build new customer loyalty.
• Consider ease of access. Online banking gives you 24-7 access but may not provide the specialised service you require. Consider telephone banking as well as more traditional bricks and mortar banks.

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• Think about ease of access to your account, do you want the benefits of online banking only or do you need to combine with a more traditional bank? You may be able to get a better deal by going for a pure online service.
• Look at the details, what is your overdraft facility and the cost of any penalty fees should you incur them. A discussion with the bank when setting this up can often provide you with additional flexibility if required but in many cases you will need to build up a good customer history to get better flexibility.
• What is the rate of interest on your current account? Traditionally consumers have accepted little or no interest on a current account. Today with greater competition it is now possible to earn a better rate of interest on a current account but check for penalty fees or other charges.
• Take advantage of additional services such as standing orders and direct debits to help manage your finances well.

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• Check to see if your current bank provides this service. If they do it may be a case of deciding on the ease of setting this up against any better offers that exist in the marketplace.
• Read the small print carefully. Many services will offer low costs at the highest level but try to make the money back elsewhere, for example by charging for customer service calls.
• Check for additional services. Many share dealing brokers have broadened out the services they offer to allow you to invest in other areas as well as shares.
• Check upon the ease of use, do they provide a good online account with easy to use functions and is there 24/7 customer support by email and phone?

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• An ISA is an Individual Savings Account. These allow individuals to save up to �7000 per financial year and not pay tax on the interest earned.
• You are only allowed one Maxi ISA in a financial year or two Mini ISA's.
• You should check on any fees charges for setting up and managing an ISA as it can vary and affect the overall benefits of a scheme.

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Top Tips
• Start by understanding your specific requirements, for example if you are only going on holiday abroad once this year and have no other travel insurance requirements it will be much cheaper to take a one off travel insurance deal rather than an annual policy.
• Always get at least 3 quotes for any insurance to get an overall understanding of price range.
• Book online to take advantage of additional discounts that many companies now offer on Insurance policies.
• Make sure you take action to reduce your insurance premiums by using any no claims bonus you have built up for car insurance or in the case of household insurance you can add additional locks to doors and windows, add a burglar alarm system
• Look for specialist insurance companies that may be able to cater for your needs; you should still get additional quotes to check how competitive they are. For example there are now specialist insurance companies for women drivers, young drivers, sports cars or classic cars.

Top

Top Tips
• Compare loans by looking at the APR (annual repayment rate) but make sure all loans compared are with or without the repayment insurance fees to get a true like for like.
• Look at additional features such as a payment break or holiday that allows you to skip a payment or two.
• Check to see if there are any penalties if you try to repay the loan early. This may be in the form of a one off charge.
• Note the difference between a secured loan and an unsecured loan. A secured loan is usually easier to obtain and for larger amounts as the lender will ask you to provide security against the loan. This usually takes the form of your property even if you are still paying the mortgage. Therefore if you are unable to repay the loan which will be for an agreed term, at an agreed rate of interest paid monthly you are at risk of losing your home.

Top

Top Tips
• Research and understand the different types of mortgages available in the market. There will be one that will be more suited to your personal requirements and can make a significant difference to your plans in the short and long term.
• If you take a variable mortgage calculate the repayments if the interest rates increase significantly so you understand if you will be able to make the repayments. Whilst you may think interest rates are stable a 1% increase can lead to large additional repayments each month because the sums of money borrowed for mortgages are so large.
• Most Mortgages are for a 25 year term and paid back monthly. It is worth making calculations to see how much the monthly payments will be if you pay the mortgage back over a shorter term such as 20 years. This will lead to considerable savings on the total interest repaid over the lifetime of the mortgage.
• Check for additional benefits in your mortgage contract. Popular incentives include a mortgage holiday option where the lender will allow you to take a short break on repayments if required. Other mortgages will allow you to make additional payments of any amount against the money borrowed whereas some limit you to how much you can pay back to ensure a higher sum is charged in interest. Also you may be able to get a better deal on home buildings and contents insurance as part of a deal when you take your mortgage although you should also be very careful not to take the first cover offered by the lender as consumers often take this for administrative ease only to find they could get a much cheaper deal with another insurance provider.
• Note that although there may be some more attractive deals on offer you may not meet the lending criteria of the lender. Quickly get an understanding of the criteria so you don't waste time applying for mortgages that you can't obtain.

Top

• If you need quick access to your savings, ensure there are no penalties for withdrawing money. Many savings accounts offer good rates of interest but with limitations such as only withdrawing money if 30 days notice is given, or ensuring at least a certain amount of money is always in the account. It can sometimes be better to take a slightly lower rate of interest but have quick access to your money for emergencies.

Top

• In today's competitive market consumers have a lot of choice about who they use for their financial services and day to day banking. It is no longer true that you need to bank with one establishment all your life but it still remains common that consumers don't change banks very often due to the administration. Online banking has made it even easier to sign up to a new bank and enjoy a better service or benefits to suit your needs.
• Look out for special incentives to open accounts; these are common for students as banks try to build new customer loyalty.
• Consider ease of access. Online banking gives you 24-7 access but may not provide the specialised service you require. Consider telephone banking as well as more traditional bricks and mortar banks.

Top

• Think about the ease of access to your account; do you just want the benefits of online banking? Or do you need to combine this with a more traditional bank? You may be able to get a better deal by going for a pure online service, mostly because this service is cheaper for banks to provide.
• Look at the details, your overdraft facility and the cost of any penalty fees should you incur them. A discussion with the bank when setting this up can often provide you with additional flexibility if required, but in many cases you will need to build up a good customer history to get better flexibility.
• What is the rate of interest on your current account? Traditionally, consumers have received little or no interest on a current account. Today, with greater competition, it is possible to earn a better rate of interest on a current account, but beware of penalty fees or other charges.
• Take advantage of additional services such as standing orders and direct debits to help manage your finances well.

Top

• Check to see if your current bank provides this service. If they do, it may be a case of deciding on the ease of setting this up against any better offers that exist on the market..
• Read the small print carefully. Many services will offer low costs at the highest level but might try to make the money back elsewhere, for example, by charging for customer service calls.
• Check for additional services. Many share-dealing brokers have broadened out the services they offer to allow you to invest in other areas besides shares.
• Check upon the ease of use; do they provide a good online account with easy to use functions? Is there 24/7 customer support by email and phone?

Top

Top Tips
• Start by understanding your specific requirements, for example if you are only going on holiday abroad once this year and have no other travel insurance requirements it will be much cheaper to take a one off travel insurance deal rather than an annual policy.
• Always get at least 3 quotes for any insurance to get an overall understanding of price range.
• Book online to take advantage of additional discounts that many companies now offer on Insurance policies.
• Make sure you take action to reduce your insurance premiums by using any no-claims bonus you have built up for car insurance, or add locks to doors and windows and perhaps even an alarm system for cheaper household insurance.
• Look for specialist insurance companies that may be able to cater for your needs; you should still get additional quotes to check how competitive they are. For example, there are now specialist insurance companies for women drivers, young drivers, sports cars, classic cars etc.

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