Archive: MoneySavingExpert's Money Tips Email

Solar panels are popping up everywhere but we've heard strong industry rumours (no gurantees) the rules may soon change, slashing the potential gain for newbies. Full info in our updated Free Solar guide, here's a taster...

• Electricity savings c. £90-£180/year - according to the Energy Saving Trust. Solar panels require a roughly south facing roof, and daylight (not sunshine, thankfully).
• Feed-in tariff EARN c. £1,100/year. This is the gob-smacking bit. The Govt guarantees that for 25 years you'll get a 'feed-in tariff', ie, be PAID to generate energy (even if you use it yourself) at over 3x what you pay to use it.
• Rumour. Feed-in tariff being slashed. These are strong mutterings it may cut by 50% for those installing panels after 31 March 2012 though not for those already signed up. This isn't surprising, as the cost's effectively covered by higher energy bills, so is a bizarre poor-to-rich subsidy. If you want to take advantage, as it takes time to sort, hurry. It could mean the end of free solar.

• Free, buy or try before you buy. The options... 1. Free solar: You get the panels and electricity savings, but the company keeps the big feed-in gain. 2. Buy them: If you've the cash, the feed-in tariff could repay double what you spend, eg, a £12,000 system could net £27,500 over 25 years. 3. Try free, then buy: Eon acts as a free solar company, but then later lets you buy it out (& then gain from the feed-in tariff) at a far lower price than others.

IMPORTANT. If you're planning this, read full pros & cons, help on fitters and more in the Updated Guide: Solar Panels Related: Cheap Gas & Elec, Energy Grants

6-month 0% card, even if you've poor credit
Longest ever poor credit scorers' 0% | Use to help rebuild credit & cut existing debt costs

Many applying for cheap cards are rejected due to their credit history. A new 6mth 0% poor scorers' card should primarily be used for credit rebuilding, though it can also reduce debt costs. Keep all borrowing affordable, minimal and ALWAYS repay before the 0% ends.

• New. 6mth 0% deal. This specific link to the Capital One* Classic card gives accepted new customers, including some with limited CCJs/defaults (not recent bankrupts), 0% spending till their May 2012 statement, so 6+ months. After that, it jumps to a huge 34.9% representative APR. Alternatively, if you've a good credit score, Tesco* and Marks & Spencer* are 0% for 15mths then 16.9% and 15.9% representative APR after.
• Use it to build credit score. Credit scoring's all about predicting your borrowing behaviour based on your past history. So get the card, then do £50/mth of normal spending IN FULL by direct debit each month, so there's never any interest. After a year or so, it should help boost your credit score, see the Boost Credit Rating guide.
• Using it to reduce other debt costs. It's only 0% on new spending, not shifted debts. Yet you can carefully use it for your normal spending (it's not an excuse to overspend) up to the credit limit, making just minimum repayments. Then use the corresponding unspent income in your bank account to reduce your worst debts, eg, to prevent repeated bank charges or repay high interest debts elsewhere, like payday loans.
  
  Yet to ensure it's clear before the 34.9% APR starts in May, do a tight budget. In emergencies, if any debt's left and you've other cheaper cards, you may be able to balance transfer it back to them (see Credit Card Shuffle). Of course, you could also use it to spread Xmas costs, yet is it really worth the risk?

FULL step-by-step info and more card options in the Updated Guide: Top Credit Rebuild Cards, Official APR examples

On Mon, we bagged an exclusive as David Cameron urged people to switch, then Martin went to the crunch energy summit & said: "Prime Minister, if prices aren't cut, this summit's failed." Even so, we're behind the Govt's new Check, Switch & Insulate campaign that'll leave many £200+ BETTER OFF (well we've been saying it for 10 years) ...

• Check, switch and get £40 cashback or a case of wine. Just plug your postcode and usage into a comparison site and it'll find your cheapest tariff. If possible, select 'monthly direct debit' payment options to slash your bill even further.
  
  Top Comparison: If it can switch you, Energyhelpline* pays £15 cashback per switch, whether gas, electricity or both. Dual Fuel: MoneySupermarket* £30, Uswitch* a crate of wine (cashback/freebies only via these special links) and SimplySwitch* pays £40 cash. Full help: Cheap Gas & Elec
• If you're thinking "I switched before, with little impact, so can't be bothered", read this...
  
  It's the perfect time to switch. Did you compare after a big firm hiked prices? That's the worst time as your new provider will usually follow suit. The best's when all have put prices up, like NOW, so it's a level playing field.
  
  Pay over £300 less than you would've. A typical house paying £1,345 on a standard tariff can slash it to £1,030. Yet we've just had nearly 20% price hikes, so this saving’s on what you would be paying, not were paying. The actual cost won't drop much - one reason people feel diddled after switching, even though they’re better off.
  
  Key or card customers can save too. Many think switching isn't for them, yet there are still savings to be had. See the Cheap Prepay Gas & Electricity guide.
• Free cavity wall & loft insulation. British Gas is offering free cavity wall or loft insulation to all its customers, worth around £200. Eon is offering anyone (not just its customers) over 70 or on certain benefits the same. Full info on these and much more free cash in our Energy Grant Grabbing guide.

The current account war continues to boil. Providers are desperate for customers (with decent credit scores) and so we're seeing the switching bribes get even bigger. Full info in the top bank accounts guide, here's a summary:

• New. Free £200 but bog-standard account. The Co-op's Current Account Plus is free, and if you fully switch to it and pay in £800 for three months, you'll be paid £200 in the fourth. It's a pretty bog-standard account: no in-credit interest and 15.9% interest if overdrawn, though it came 2nd best in our August customer service poll. Alternatively, there's £100 free with First Direct* which came top on customer service, though you need a minimum £23,100 annual income to get it.

• Free £100, 5% in-credit interest, 0% overdraft. New Santander* fee-free Preferred account customers who switch and pay in a minimum £14,200 salary get a £100 bonus, a year's 0% overdraft (50p/day after - max £5/month), plus 5% in-credit interest on up to £2,500 for a year. These are blockbusting rates, but be aware it languishes bottom of our customer service chart.
• Free £5 EVERY month. Pay a salary of at least £14,200 into Halifax's* Reward account to earn a flat £5 each month, regardless of balance, though NEVER go overdrawn as then it charges £1 a day, which adds up fast. Its customer service is middling, though much better than it was.

Free Annuity Mantras print out (give to retiring friends)
Over £20,000 gains possible | 3 things everyone must know before turning pension cash into an annuity
The Bank of England's printing an extra £75bn to kick-start the economy. Yet financial advisers say this is bad news for pensioners as it's already contributed to an annuity rate fall, with more drops possible. So if you're thinking about buying an annuity, or know someone who is, it's more important than ever to maximise the rate.

• What is an annuity? It usually pays you a lifetime income in return for your pension pot. Most experts suggest, unless you've a huge fund, it's worth it so you don't run out of money in old age. Yet two thirds make the nightmare error of just grabbing their pension company's annuity. Therefore, a 65-year-old man with a £100,000 fund may get just £5,430/yr, which is the worst possible standard return, rather than the £6,330 he could've got if he'd compared. Live to 90 and that's £22,500 lost.
• Free 30-second annuity mantras. It takes 30 secs to read but could gain someone £10,000+. So if you know someone it relates to, print it and give it them, or even pin it to office noticeboards. It covers never just opting for your pension provider's annuity and having a medical check-up even if you feel well, as you may be entitled to an 'enhanced annuity'. Free Annuity Mantras Print-out.
• Free printed MSE 30-page step-by-step annuity guide. Getting an annuity is perhaps the most important one-off financial decision you'll ever make, as once done, you can't change your mind. Our free booklet takes you through all the key decisions and shows you how to boost it. Order a printed copy or instantly download a PDF.

More free guides: Remortgaging, Mortgages