Cheap Mobiles

You’ve a better chance of picking the correct lottery numbers than mobile tariff. With over ten networks, each with up to 30 tariffs, sold at different prices with and without cashback the combinations are vast. Yet, with a few nifty tricks, you can find the cheapest price in minutes, saving £100s or £1,000s a year.

• Already got a contract?
• Best Buys: Compare tariffs
  
• The top tariff comparison services
• Best Buys: Maxing the discount
• Beat the contract cashback
• Pick the perfect package
• Other Articles/Discuss

Beat the contract cashback trap

Already got a contract? Major savings

To switch or not to switch; that’s the question. Often the biggest savings come from moving to a completely new deal. While new rules mean it now only takes two days rather than five to port your number, it can still be more trouble than it should be. Therefore first see if you can save without switching.

• Shift to another plan…

  Most networks have a vast range of tariffs and five minutes spent examining your usage can save a fortune. Use the comparison services listed below to search for the best tariff on your existing network.

• Beat the best packages available by bullying your network

  Anyone on a contract mobile phone is holstering a serious MoneySaving weapon…. loyalty. When nearing the end of the contract, ask for the very best deal possible, not just on your network but any out there.

  If it won’t budge, tell it ‘give me a better package or I'll leave', and you’ll be put through to the disconnections department, which internally is called ‘customer retentions’ and has massively more discretion to offer better packages to keep you. Full details in the Batter Down Your Mobile Contract article.

If that doesn’t give you what you want then you need to shift network to a better deal. Yet you may be locked into a poor existing contract; if so there is a way to try and escape this…

• Cheapest way to break your contract

  If you're still in your contract period, you can port the number to a new provider, but you'll need to pay the monthly fee until the contract ends. To save money, always reduce your package to the lowest tariff and either pay it off in one go or let it run until you're out of contract. Some networks will only allow this once if you’ve had the phone for more than six months. One well known TV researcher thanked me as she’d saved £100s by following ths tip.
  

Compare the cheapest mobile deals

First work out what type of package you need; if you’re not sure, read the picking the perfect package section first. If you're a heavy text user, it's possible to slash the cost of your bill by grabbing free texts not included in your package. For info on how to get free texts from the web or texting for a fraction of a penny from your mobile see the Free Texts article.

The tariff is the network’s setting and for both Pay-As-You-Go and contract packages dictates the number of free minutes (if any) and the cost of calls, texts and any data use.

Yet the same tariff can cost vastly different amounts depending on the handset, retailer and whether eye-catching cashback deals are offered. Don’t let this distract you; over the long run the tariff is the biggest factor impacting costs…

• Do you have a Contract mobile phone?
  
  Often it’s easy to be tempted by sexy looking cashback deals, yet they are notoriously unreliable; this is why you must pick the right tariff first, then even if there’s a problem with the cashback, you’re on the cheapest deal anyway.
  
  
  Try to match free minutes/texts closely to your usage. If not, go over and you’re overpaying for calls, go under and you’re overpaying for the package.
  
  
• Are you a Pay-as-you-go user?
  
  Be very wary of picking a deal, just because the handset is cheap. Mobile phone companies often deliberately price sexy phone models lower, but on poor tariffs. So while you think “great, the coolphone101 is only £10 here” once you start using it, any savings made are soon eaten up by higher call charges; for everyone other than granny-in-the-glove box users, focus on getting the right tariff.
  
  
• Do you call abroad/ use your phone when abroad?
  
  If you do, barring checking the handset will allow it, don’t let it play a part in your decision, there are separate solutions; read either the Cheapest Way To Roam or Free International Calls From Your Mobile articles.
  

What if the best deal is from my existing provider?

New customer deals are usually much better than those offered to existing customers. So if your cheapest deal is from your existing provider first try and see if it will match it (see the Batter Down My Mobile Contract article).

The mobile market is rife with a variety of discount packages, meaning the same tariff on the same network can cost vastly different amounts. There are three types of discounts given on mobile phone contracts…

• Monthly fee reductions. This is usually a small reduction in the monthly fee e.g. the first six months at half price.
  
  
• Cashback deals. The big discounts come in the form of a ‘cashback redemption' that has to be claimed from the retailer, yet they’re notoriously unreliable (see beating the cashback trap below).
  
  
• Automatic cashback. These are cashback deals where you'll be sent a cheque automatically without claiming. They are becoming more popular but don’t offer as big discounts as manual cashback. Some deals can also be part manual, part automatic cashback; if that’s the case only count on receiving the automatic amount.

How to find the cheapest deal

Now you know the correct tariff; the aim is to re-use the comparison services this time finding out who’ll give you the biggest discount on your chosen tariff. Don’t be drawn to switching to a different tariff for a top cashback deal – let the tariff rule.

• Onecompare is the King.
  
  Onecompare* is the hands-down winner here as having found the best tariff you can then simply click on the right hand column that says “this tariff may be available with further discounts. Click here”. This then lists all the cashback deals at different retailers for specific tariffs.
  
  Better still, on top of that, Onecompare also monitors the terms of those deals for you and sends a reminder when you need to post in your cashback redemption forms; helping ensure you actually get the cashback.
  
  
• Try the others for belt’n’braces.
  
  This easy functionality for doing a cashback search on your chosen tariff isn’t matched by the other comparison services; so it’s a lot more fiddly. Yet it’s worth remembering Onecompare doesn’t give you a whole-of-market search and the others include retailers it doesn’t. The widest range is with MobilePhoneChecker*, and Moneysupermarket* is strong too.

On top of this you’ll also find MoneySavers reporting their current best spots in the finding mobile deals section of the Forum.

Any super-cheap deals go in the free weekly MoneySaving e-mail

Beat the contract cashback trap

Encouraged by the mobile networks, many retailers offer big cashback deals. These deals often look too good to be true, and they are, the simple fact is many people won’t collect on them, and the retailers know that. Yet if you do get cashback it can often cover an entire year’s worth of mobile monthly fees, and is therefore worth many £100s.

Yet, if you’ve followed the system above, you’re assured of a good deal, because you’re on the right tariff; so there’s no problem trying to grab the cashback on top. Reclaiming usually involves filling in a form and sending it off, up to five times during the contract period; fail to do this exactly and you’ll miss out on the discount. The following are the main things to watch for…

• Always read the small print. It’s important to discover every hoop they’ll force you through. Does each time you send a form trigger some payment? Or, as usual, is it a send all or get nothing scenario, so if you miss sending one form, the whole thing’s invalidated.

• Call and check the timings needed. Never assume a cashback deal is simple. If it says “send your bill after three months,” this may mean three months from application, three months from activating the phone or after you’ve received your third monthly bill. Call up the cashback company and check.

• Be careful with addresses. The address you send claims from needs to be the address used to order with, otherwise the claim may be invalidated. And if you move house, let them know immediately.

• Are you keeping your old mobile number? If you port your existing number to the new contract you might be asked to send, in addition, the very first bill you received showing the original mobile number you were allocated.

• Use the Tart Alert as a reminder. The tart alert is this site’s free text message/e-mail reminder service; its main use is to remind people before their credit card 0% period ends, but I'm happy for you to use it as a reminder to fill in your rebate form. Enter the rebate date and you'll be sent a free text message or e-mail (your choice) six weeks beforehand as a reminder.

• Consider another form of cashback. Regardless of whether cashback is officially offered, there's a possible additional amount. Simply sign up for the phone via a cashback website.

  These are special sites carrying paid links from retailers and if you click through them and get a product they’re paid. Importantly, they then give you some of this cash. It is no where near as big a deal as cashback redemption but could mean an extra £20 or £30. Find out more in the Top Cashback Sites article.

• The cashback deal is with the retailer, the tariff with the network. Even if it goes wrong you still keep the tariff with the network. Sadly cashback retailers can and do go bust; if they do, it’ll be tough to recoup. Yet don’t forget the network encourage these deals, and if you believe you’ve been unfairly treated, a strong letter to the network asking it to step in is worthwhile. If you do have cashback problems, always ensure you report the company to trading standards, and if you’ve been treated unfairly consider a small claims court action.

Are you getting a new phone?

If you are, it’s worth remembering that both for the environment and your pocket; there are lots of companies who’ll give you serious cash if you send them your old mobiles. Use the MobileValuer tool to find the top payer for your phone.

Picking the perfect package

There’s more to mobiles than just the price; if you’re new or inexperienced at getting a mobile deal, this additional section is here to help.

First, ensure your network will work for you

There's no point getting the cheapest package if you can't access it. Not all networks’ connection quality is equal. Ask colleagues and neighbours what the reception is like in your regular immediate locale.

Do remember there are only actually five networks, the others are ‘virtual networks' meaning they piggyback via a main network's infrastructure, and it is this which dictates the reception received.

Now work out what your usage will be

The amount you will pay depends on a number of factors.

• How many calls do you make?
• Are they peak or off-peak? Peak is usually 7am to 7pm mid-week
• What proportion are to other mobiles? Calling mobiles is much more expensive; if you do it often then a ‘cross network package', where inclusive minutes include calling mobiles, is usually cheapest.
• Total texts? Text messages are expensive. Get a ‘bundle' package if you send many, i.e. buy 120 a month at a reduced price.
• Roll-overs. Whether it's a month's free minutes or bundled texts, establish if they're unused at the end of the month, whether they will roll-over into the next month's allocation. The equivalent for Pay-As-You-Go users is checking how long any vouchers last.

Choosing between Pay-As-You-Go and Contract

Pay-As-You-Go means you prepay via vouchers or electronic top up. With a Monthly contract you pay a monthly fee and are billed for calls made. Unfortunately, those with poor credit histories have no choice; contract applications are usually credit scored – so PAYG is the only option.

As a rough rule of thumb, use less than 150 minutes of calls and hundred texts a month and PAYG is cheaper, as the higher call cost is offset by the lack of monthly fee though this ignores the upfront cost, which is hefty with a high-end phone as PAYG isn't as heavily subsidised as contract. It also has the advantage that there's no bill, so no shock when you realise how much you've spent.

As well as being substantially cheaper for heavier users, because it will have ‘inclusive calls' the big advantage of contract is you can't run out of minutes, plus the phone is always accessible and always available, yet you're locked into it.

Pay as you go without a new phone

Those with an existing or old phone can buy a sim card to use in it (the Sim is the small microchip card you insert in the back, which identifies the phone to the network). Buying a standalone sim is much cheaper than getting a phone.

The only obstacle is the phone might be locked to a network, meaning switch sim and it won't work. To unlock it is both legal and relatively easy to do for free, you just plug in a code from the internet. For full details read the full Mobile Unlocking article.

Super-cheap deals go in the free weekly MoneySaving email