Five reasons why loyalty doesn't pay

Sadly, in this day and age, when it comes to managing your finances loyalty rarely pays. Victoria Bischoff explains five ways being fickle could save you a fortune!

When I was growing up, I was taught that in life it's important to be loyal.

However, while this may hold true in relationships with family and friends, when it comes to dealing with financial institutions loyalty is rarely rewarding.

If you buy all your financial products from the same company and never shop around, it's unlikely you'll be getting the best possible deals.

In this article, I'll explain why it's worth going the extra mile to track down the market's leading offers.

1. Switch to save

When it comes to energy, if you're a loyal customer it's likely you will lose out on the very best deals.

In fact, if you've never switched your energy supplier or have not done so for some time, you could save up to a whopping £391 on gas and electricity this year.

This is because in our privatised market, energy companies compete for new customers by trying to undercut one another's prices. Therefore, if you always stick with the same supplier, you won't have access to the competitive tariffs used by firms to tempt others into switching providers.

The best way to bag a top energy tariff is to shop around and compare prices before committing to a deal. One of quickest and easiest ways to compare quotes from a range of companies is by using an online comparison service such as the BeatThatQuote utilities tool.

You can find out more about how to switch successfully here. Alternatively, read this article to learn some simple ways to slash your energy bills this summer.

2. Cut the cost of your cover

As with energy suppliers, many insurance companies will save their best deals and discounts for new customers.

Consequently, if you stay with the same insurance company year after year, it's unlikely you'll pay the most competitive price for your premiums.

What's more, not all insurers assess risk in the same way and no two companies are likely to offer you exactly the same deal. If you're looking to buy or renew a car, home or life insurance policy, it's crucial you shop around and compare what different companies will charge you for cover.

One of the easiest ways to check what's on offer from a wide variety of insurance companies is to use an online service such as BeatThatQuote.com's insurance comparison tool.

Since January this year, BeatThatQuote customers have saved on average £138 on home insurance and £122 on car insurance.

3. Bag a better Broadband deal

If you've had broadband for a while but haven't shopped around recently for a new deal, you may be paying more for your wireless than you need to. It's well worth checking with your provider to see if you're on the best deal they are currently offering.

If not, dig around to see what other deals are available and how they compare to what you're paying. Using an online price comparison tool, such as BeatThatQuote's broadband service, is an easy way to search the market for the latest broadband offers.

However, before you jump ship, don't be afraid to try and haggle with your current provider for a better deal. Broadband companies are aware of how competitive the market is and will often pull out all the stops to secure your custom.

It's also a good idea to find out if it will work out cheaper to combine your broadband service with your telephone and cable costs in one bundle, rather than using a separate provider for each.

4. Don't neglect your nest egg

If you leave your hard earned cash languishing in an account for years on end, it's unlikely you will earn a competitive rate of interest on your savings.

In order to make your money tree grow, you need to be pro-active. You can ensure you're making the most of your cash stash by regularly checking to see where the most competitive savings rates are.

If you find you're earning pittance on the pennies in your piggy bank, shop around and pick an account that will keep your money growing at the fastest rate possible.

It's often the case that the market's top savings deals come with temporary promotional bonuses, so it's a good idea to make shopping around for a savings account an annual event.

To find out more about where to stash your cash, read Laura Starkey's recent article about savings rates here.

5. Shop around for super savings

Right now, with the recession pulling at our purse strings, many shopaholics have been forced to rein in their spending.

As a result, many retailers are offering their customers regular deals and discounts in a bid to attract more business.

Therefore, if you take the time to shop around for the things you need, you could make some serious savings. Right now, you could cut the cost of almost anything from your weekly food shop to swanky cosmetics and snazzy gadgets.

One of the fastest and easiest ways to compare a wide range of prices is to use a cost comparison service or 'shopbot.'

Instead of trawling the high street, you can simply enter the item you're looking for into a search engine, whisper abracadabra and a list of retailers that provide the product will appear before your very eyes - usually in lowest-price order and including delivery charges.

In this article I explain more about how shopping online can be one of the best ways to bag a bargain.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**