Archive: MoneySavingExpert's Money Tips Email

Student loan rates hike - should you pay it off? New guide
On Thur the rate jumps to 5.3% for 100,000s of former students. If you've savings, should you overpay?

If you're one of 4.2 million students or graduates with an outstanding loan, the new academic year interest rates start tomorrow. With costs for many soaring, we've a fully re-researched Should I overpay my student loan? guide for those wondering whether to clear some or all of it with savings. Here's a summary of the changes.

• Student BEFORE 1998 - your loan interest's now 5.3% (was 4.4%). The rate is set annually, based solely on the inflation rate (RPI) the prior March. Sadly, that was a big 5.3%, so 320,000 graduates now pay £530 interest a year per £10,000 owed.
• Student FROM 1998 onwards - interest remains 1.5% (but could rise). The rate is set at the rate of inflation (RPI) for the prior March (5.3%). Yet a clause says in the unlikely event base rate + 1% point is lower in any month, you just pay that. This unlikely event's been in play for a few years now as the base rate's just 0.5%. The 3.9m with these loans currently pay 1.5% (£150/year per £10,000 debt), but if rates rise, the student loan rate immediately jumps, to max 5.3% (was 4.4%).
• Is it worth paying off quicker? Always 'repay debts with savings' is our standard mantra. Yet it's different with student loans as it's the cheapest long-term borrowing possible. If you've other debts, it's usually best to repay them first. If debt-free, many can earn more saving in the Top Cash ISA or Top Savings Account than the loan interest costs, plus clearing student loans can be a mistake if you plan to get a mortgage or car loan. See guide for why.

Full guide and calculator: Should I Repay My Student Loan? Related: Student Finance 2011, Parents' Guide 2012, Student Loans 2012 - Facts Not Myths, Top Student Bank Account, Should I Repay My Debts Or Save?

Last chance. Tesco double exchange ends Thurs
Find lost vouchers then swap for 2x their value IN-STORE until 1 Sept

If you've got Tesco vouchers sitting in your pocket, drawer or back of the sofa, now's the time to act as you've a big extra option to boost rewards. Here's a quick summary of what to do:

• Step 1: Find £100s of lost Tesco vouchers. There's a way to quickly check and reclaim unused or lost old vouchers online, see Reclaim Tesco Vouchers, then print them instantly or use the code to add to your current stash. Many have found £100+, please report successes.
• Step 2: Check if you can TRIPLE Rewards. Before doubling up in-store, check Tesco's Rewards brochure as it may allow you to triple the value of your vouchers (£10 becomes £30) on train tickets, jewellery or more. Yet this tripling is based on list prices, so to check what's best value use our top 10 Tesco Rewards.
• Step 3: Urgently double vouchers' value in-store. The deadline to swap vouchers on Tesco's Summer Voucher Exchange is this Thurs. You can swap each £5 voucher for £10 tokens to spend in-store by 11 Sept. The list of available departments isn't as wide-reaching as previous incarnations of this deal. Vouchers can only be doubled on Finest food & drink, cosmetics and fragrances, flowers and plants, mobile phones, opticians and pet food.

For more info and help see the Updated Guide: Tesco Clubcard Points Boosting Related: Nectar/Airmiles Points Boosting, Cheap Supermarket Shopping, Tesco 0% for 15mth credit card + points

A new credit card offer combines multiple features to make it a killer deal. And if you follow the recipe and use it correctly you could make serious money. You'll need to pass a credit check to get it.

• New. 5% cashback and 0% on spending. The fee-free Capital One* World Mastercard's already top cashback card; it pays a huge 5% on all spending (£5 back per £100) on up to £2,000 spent during your first 3 months. After, it's 0.5%-1.25% cashback (the higher rate's on annual spending over £10,000). To get it, you need to earn over £20,000, be 21+ and a homeowner.
  
  Normally, the golden rule is 'repay in full each month' or the interest dwarfs the cashback. Yet apply via the special comparison site link above by 8 Sept to also get 0% interest on spending until March 2012. For big, planned purchases the double whammy of cashback and ability to spread the cost (always pay the monthly minimum) is a winner. Yet plan to clear repayments by March or it jumps to a big 19.9% rep APR.
  
• Stooze to deliberately make profits (for the super-savvy only). If debt free, and a Superman with spreadsheets, this card's perfect for stoozing - earning interest on cash lent for nowt. Use it for all daily spending, gaining cashback and leaving your salary untouched so you can save it in a Top Cash ISA or Savings. In March, when the 0% ends, either use the savings to clear the card, or balance transfer to keep stoozing. Warning: This is a complex technique with pitfalls. Read warnings in the Stoozing: Profit From 0% Cards guide.

Full details and other best-buys in the Updated Guide: Cashback Credit Cards, Stoozing Related: Best Balance Transfers, Check Your Credit Rating (see Official APR Examples).

Urgent! Energy fix price war
EDF & Scottish Power slash fixed costs | Likely short-term customer grab | Take advantage ASAP

Energy companies often launch special deals to temporarily put them top of comparison sites to grab customers. Yet these newbies are year(ish) FIXED rates, so if you grab one, the price can't rise later - but they're unlikely to be around long.

• Huge savings. EDF's re-launched its cheap fixed tariff which charges a typical household £1,010/year. Scottish Power's hit back with £30 cashback (on top of usual freebies) on its £1,020/yr fix if you switch via certain comparison sites. Compare this to Scottish Power's own standard tariff, which is £1,390/yr or British Gas standard at £1,290/yr and you'll see the savings.
• Why are they cutting costs when prices are rising? Our guess is Scottish Power's doing it as it was first to announce hikes so probably lost customers and wants some back. While EDF hasn't announced hikes yet, probably in the hope of gaining customers, this may be a reaction to Scottish Power's cheap launch.
• Compare to find cheapest & get cashback. Prices vary by region, so plug your details into a comparison site to check which wins for you and how much you'll save (for fixes, click the 'show only fixed tariffs' tabs). Via these two special links you also get cashback/freebies on top of the £30 Scottish Power boost if they can switch you. Top comparison: Energyhelpline* pays £15 cashback per switch, whether gas, electricity or dual. Dual fuel: Uswitch* a crate of wine. Alternatively MoneySupermarket* offers £30 cashback but isn't giving the extra £30 Scottish Power boost on top.
• Fix NOW if you can't afford rises. A fix is like an insurance policy against price hikes. If you can't risk rises and are on a standard tariff, thus massively overpaying, a CHEAP fix (not just any fix) is a no-brainer. However, if you need to leave early, you'll pay an exit fee of about £20-50/fuel. Some on already-cheap deals may find fixing costs more - hence why comparing first's so important. See full Fixing FAQ for more.
  

For full info, how to cut costs & more help, see the Updated Guide: Cheap Gas & Elec Related: Cheap Prepay Gas & Elec, Mis-sold Energy? Reclaim, Free Solar Panels, Energy Grants, plus Martin's Wholesale prices dropping? blog

New 6.2% APR loan - cheapest since pre-crunch
Loan price war | Interest slashed for bigger borrowing | Sub-£5,000 loans still costly

The loan market's gone crazy this week, with rates slashed up, down and around, to their lowest for FOUR years. Only get new debt if needed & if it's as small as poss. Always do a budget to ensure it's affordable & repay as fast as possible. Full help and best-buys are in the updated Cheapest Loans guide, but here's a summary.

• New. 6.2% representative APR loan for £7,500 - £15,000. Sainsbury's* charges 6.2% if you repay in 1-3 years (6.3% in 4-5 yrs via this link*) and have/get a Nectar card. Like all loans, it's 'representative APR' so only 51% of accepted applicants get this rate, worse credit scorers pay more, but you only find out by applying.
  
• Nationwide's 6.3% rep APR and gives a 'quote without commitment'. This week, Nationwide's* cut its rate to 6.3% representative APR for existing FlexAccount holders and 6.4% for everyone else. Its unique feature is it'll tell you what you'll pay before applying, so you get to know without it hurting your credit file.
• Cheapest for £5,000 - £7,500. Sainsbury's* Nectar cardholders get 8.1% representative APR for 1-3 year loans or 8.2% for 4-5 years via this link*, next top is Santander* at 8.3%.
• Cheapest loans under £5,000. Here, loans are a bigger rip-off than Velcro, eg, for £2,000 the cheapest's 14.9%. So if you can repay quickly and have a big planned store purchase, accepted new Marks & Spencer* and Tesco* credit card customers always get 15mths' 0%, though plan repayments to clear the debt before the 0% ends or it's 15.9% and 16.9% rep APR, respectively (see 0% Card guide).
  
  For cheap cash loans, see the technique in the Credit Card Loans guide, and for consolidating card debts see Best Balance Transfer. These only win if you repay a decent amount each month, not just the minimum.
  

FULL loan rate, info, calculators and more in the Updated Guide: Cheap Loans Related: 0% Cards, Balance Transfers, Official Card and Loan APR examples

With bank accounts, as we use them daily, service counts. Sadly, those with the best rates often have the worst service. Yet, the results of our latest poll of 6,000+ people are in and some big players have seen a dramatic boost. All accounts require a credit check and min paid in monthly (below, we convert this to equiv. min salary).

• £100 for switching to top customer service account. Min £23,500 salary. First Direct's* won every customer service poll we've ever done. This time a biggest-ever 91% voted it 'great'. Switch to it now and there's a £100 bonus available. It pays no in-credit interest, but has a £250 0% overdraft (15.9% interest above). It's only fees-free for those earning £23,500 (or have another First Direct product) though, otherwise it charges £10/mth (so avoid).
• Free £5 EVERY month. Min £14,200 salary. Pay your salary in and Halifax's* Reward account pays a flat £5 each month regardless of balance. Better still, its customer service is improving, 43% rate it great (was 36%) and 16% poor (was 17%). Only get this account if you NEVER go overdrawn, as it charges £1 a day.
• Free £100, best rates, 0% overdraft but worst service. Min £14,200 salary. Switch to Santander's* fee-free Preferred account and you get a great package of £100 bonus, a year's 0% overdraft (50p/day after - max £5/month), plus it pays 5% in-credit interest on up to £2,500 for a year. Yet while improving slightly, it remains languishing at the bottom of the customer service charts. Just 25% rate it great (was 23%), 39% poor (41%).

Always ensure you don't go beyond your overdraft limit or costs rocket. Full info & best-buys in Updated Guide: Best Bank Accounts Related: Cashback Credit Cards, Basic Bank Accounts. Also see MSE News: Customer service results