Fruit might be good value from supermarkets, but frequently financial products aren't
Supermarket finance products overpriced
Thursday, 02 Nov 2006 14:40
Taking out a loan or credit card from a supermarket can leave consumers paying 'over the odds'.
That is according to a new study by consumer group Which? investigating the financial products on offer from UK supermarkets.
For example, Which? calculates going to Marks & Spencer for a £5,000 personal loan can cost £384 more over three years if the consumer went to the best-value specialist loan provider - the price of a month's groceries.
Additionally, credit cards from shops more familiar with food than finances can prove poor value - Morrisons' credit card charges 18.9 per cent APR and Tesco's charges 12.9 per cent but Halifax's Flat Rate Online offer charges less than half this at 5.9 per cent.
This could see a consumer charged £153 more a year by taking a supermarket card rather than one from a financial firm.
"Just because supermarkets offer good value on groceries, don't assume this applies across the board," said Which? editor Neil Fowler.
"You can pay well over the odds for the convenience of picking up a financial product with your weekly shopping."
But there are some good deals on offer in the marketplace if you know where to go.
The life insurance offered by Sainsbury's, Asda, and M&S was seen as good value by Which?
Additionally, Sainsbury's internet savings account is rated as one of the best value on the market.
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