Shop around, says the FSA

Consumers could save more than £700 a year by comparing prices on financial products such as current accounts, mortgages, credit cards and personal loans, the Financial Services Authority says.

Research shows that four in 10 consumers think there is little difference between the costs and charges of different companies. But an FSA report titled Losing Interest? How much consumers can save by shopping around, which launched last week, shows consumers could save as much as £26 per year by shopping around for the best current account, £117 for the best savings account, £230 for mortgages, £137 on credit cards and £116 on loans.

FSA chairman Howard Davies says: “We are encouraging consumers to shop around to get best value on products and services. Look at the prices and then weigh up what you will get for your money before you buy. We are not saying that cheapest is necessarily best but it&#39s not just people with money to spare that can make savings. We can all benefit by shopping around, particularly the young, the elderly and those on low incomes. These groups tend to get worse rates of return.”