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By David Stevens Personal Finance Correspondent
Tuesday, 19 August 2008 |
Let Your Current Account Foot the Fuel Bill
The 3 steps that could save you hundreds:
- Clean up your direct debits and standing orders
- Claim back unfair bank charges (or phone and request a waiver for recent indiscretions)
- Switch current accounts (it’s much easier than you think)
 See our Current Accounts section
Related Money News
See our other recent related news stories:
Is the ruling on bank charges just a Pyrrhic victory?
While customers jumped for joy at the recent court ruling over claiming back bank charges, is this just a Pyrrhic victory asks Lorrie Kelly as evidence emerges of higher costs for all of us as a result.
How to get the best interest on your savings
As the credit crunch bites the banks in the nuts, they're falling over themselves to offer some of the best savings rates seen in years, writes Sarah Wray. Discover how to get the most of your savings in this simple to follow savings guide.
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THE depressing inevitability of hikes in our utility bills this winter following rabid increases by the energy companies over the last few months needn’t mean you have to conjure up those extra pounds out of nowhere.
A few simple changes over at your current account could more than cover any increased costs.
With a few phone calls, a couple of clicks of a mouse and perhaps walk to the postbox, you should be able to offset any utility bill rises threatening to knock the wind out of Christmas this year.
1. Stop giving away money by Direct Debit
Phone your bank – or if they have the facility online, do it there – and ask them to present you with a full and thorough list of all the standing orders, direct debits and other recurring payments you are making each month.
Chances are you are paying for something you really no longer need.
Classic savings account suckers to look out for include: - Recurring payments for subscriptions you no longer require (or perhaps didn’t know you still had)
- Insurance premiums that you were unwittingly sold (such as mobile phone insurance, payment protection insurance etc.)
Cancel anything you no longer need (and importantly are not required to pay) immediately.
2. Claim back your overpaid bank charges
If you haven’t done so already, you could be allowing the banks to keep hundreds – if not thousands – of Pounds in unfair bank charges such as penalties for bounced cheques or exceeding your overdraft facility.
Firstly, take a look at any charges that have been made in the last month or two. A quick phonecall to the bank to ask them to waive these fees may net you a refund – especially if you have a clean bank record.
Serial offenders may have to resort to more rebellious means and join the million plus bank customers who have made a claim for refund of the charges they feel they have overpaid in the last few years.
At the moment, the banks are holding out on making any payments until a court decides on the legality or otherwise of these payments.
However, just because they are not paying out at the moment shouldn’t stop you putting a claim in.
A simple claim form is available online from sites like Moneysavingexpert.com and the Guardian’s Money section.
3. Switch to a better current account
We know it feels like a hassle and you’re probably worried about your direct debits and standing orders (which you should have a clear record of if you followed step 1) but switching current accounts in this day and age is extremely simple, not to mention lucrative.
By law your old bank must pass information to your new bank within 3 days, then the new bank has just 10 days to set up your account. They normally do this much faster – sometimes all within the same day.
Chances are your current account is still held with the same old bank your dad set you up with when you were 16 – the same bank that probably pays you a miles-below-inflation interest rate on your balance!
Switching to a new account could bolster the interest on your balance to as high as 8%.
What’s more, a new bank account could put pounds back in your pocket in a number of ways: - Some banks pay you a bonus if you sign up with them. First Direct gives you £100!
- You could get yourself a larger overdraft limit and negate the penalty fees you have been paying for exceeding the overdraft at your old bank.
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