Consumers could save hundreds of pounds by shopping around for best value, says FSA

Howard Davies, FSA Chairman, said:

"We are encouraging consumers to shop around in order to get best value on financial products and services. Look at the prices and then weigh up what you will get for your money before you make up your mind.

We are not saying that cheapest is necessarily best. You might, for example, choose to open a current account at a particular bank or building society because it has a branch near your home or office.

Its 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. Lets all take a lesson from the Scots because, as the research shows, they tend to get the best rates of return on their savings accounts while Londoners get the worst."

New research results

Four out of ten consumers think there is little difference between the costs and charges of different companies. But an FSA report, Losing Interest? How much consumers can save by shopping around, launched today shows the savings that could be made by shopping around and going to the least expensive provider:

The report goes on to examine the annual savings that could be achieved by typical UK families:

Young couples

• Under 35, no children

• Current account, savings account, mortgage, personal loan and credit card debt

• Total possible saving = 711

Older families

• 35-54, with children

• Current account, savings account and mortgage

• Total possible saving = 284

Retired couples

• Above state pension age (65 for men and 60 for women)

• Current account, savings account and annuity

• Total possible saving = 340

To help consumers shop around and get the best value deal, the FSA has produced a number of tools:

• A guide for consumers It pays to shop around which is filled with practical tips that will help them know the right questions to ask. It is available free from main high street post offices and from the FSA Consumer Helpline on 0845 606 1234.
  

• Internet tables at www.fsa.gov.uk/tables provide consumers with easy to understand, impartial information so that they can compare the features and prices of a range of financial products including unit trust ISAs and personal pensions including stakeholder pensions. Mortgage tables will be launched shortly.

• A dedicated shopping around section at www.fsa.gov.uk/consumer.
  

Notes for editors

1. Sarah Smith, author of the report Losing interest? How much consumers can save by shopping around is available for interview. To arrange an interview contact the FSA press office on 020 7066 3232.

2. A picture of Howard Davies launching the results today, Tuesday 29 October is available from the FSA Press Office at 020 7066 3232.

3. The report is available at www.fsa.gov.uk

4. The report points out that the savings quoted cannot be multiplied by the total number of consumers to give an overall figure. If all consumers switched providers, the rates offered could change.

5. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the appropriate degree of protection of consumers; and fighting financial crime.

6. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.