4th June 2010
... Comments

The Top 10 most useless financial products  ...

1. Mobile Phone insurance - costs up to £100 a year
WHY ? 
because you're probably already covered by your home and contents policy

2. Extended warranties - costs sometimes more than half the cost of the item
WHY ? 
way too expensive to ever we worthwhile taking out

3. Structured Investment schemes - can be hugely expensive
WHY ? 
Complicated, confusing and ultimately expensive

4. ID Fraud cover - costs around £100 a year
WHY ? 
Because the bank will cover most losses (by law)

5. Payment protection insurance - on a £10K 5-year loan could add up to 50%!
WHY ? 
PPI is a rip off - if you must, take a look at income protection instead

6. Secured Loans - they'll take your house if you fail to pay !
WHY ? 
Far too risky - stick with unsecured loans at all times!

7. Store cards - you'll pay through the nose for the benefit, an average balance of £1000 will cost you £300 a year !
WHY ? 
Interest rates are totally OTT, you're much better off going with a normal credit card

8. Car Bodywork protection plans - charges up to £300 on a brand new car to cover the bodywork
WHY ? 
yet another ruse to extract yet more money from gullible customers - you'll probably sell the car after 3 to 4 years and it will make absolutely no difference to the sales price

9. With profits invetments- £500 a year invested in a full-cost-with-profits endowment over the past 10 years could have actually resulted in a loss!
WHY ? 
Charges are way too high - stick to a simple stocks and shares ISA

10. Packaged Account - can cost over £300 a year
WHY ? 
Why pay any charge at all, not worth the money and you are unlikely to ever use the benefits provide.d


About the Author

Sally Castro

Member since: 28th May 2012

56, married, 3 children - passionate about all things local! Owner of the bestofguildford site, keen supporter of Guildford Rugby Club... serial networker

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