Archive: MoneySavingExpert's Money Tips Email

New. Cheapest Brit Gas deal since 2016 & existing custs can get it too, like MoneySaver Gary: 'Switched from Brit Gas to Brit Gas - saving £100 A MTH'

British Gas has relaunched its super-cheap tariff (sadly not prepay, nor N Ireland), and made it even cheaper. It's by far the cheapest tariff from any Big 6 supplier on typical use, and very close to being the market's all-round cheapest after MSE cashback. Only a few tiddlers with little or poor customer service feedback can beat it. Of course, we'd always suggest you do a whole of market comparison via our Cheap Energy Club, but for the many scared of switching or loyal to British Gas, this is an easy win.  

• New. Cheapest Brit Gas since Oct 2016 - save an avg £340/yr on typical use. The dual-fuel only British Gas Energy Plus Protection Mar 2021v2 tariff costs a typical £814/yr after MSE cashback. That's compared with the £1,155/yr avg of the British Gas and other Big 6 standard tariffs. The rate is fixed for a year, so there'll be no price hikes (though what you pay can change with your usage).
  
  It's the same gas, same elec & same safety - and for British Gas customers, the same service. However it's far cheaper, 100% renewable elec (not gas) and gives 1yr's 'free' heating insurance. There are £60 early exit fees and smart meters are required (it'll install them for free if you don't have 'em already).
  
  
• How can I get it? It's only available via comparison sites. So new and existing custs can use our British Gas link, which takes you through our energy club comparison AND gives you £25 dual-fuel cashback. It also allows you to see how it stacks up against other big name tariffs (as your exact savings depends on where you live and what you use) - do use our filters to see top customer service, green and other deals.
  
  
• MoneySaver Gary saved £100/mth. Savings can be huge, as high energy user Gary emailed us about the previous version of this tariff (which wasn't even as cheap): "Hi, as a result of Martin's advice, we changed from British Gas to British Gas and saved £100/mth - reduced from £375/mth to £275/mth. In addition, I received free boiler, drainage and electrical cover. The drain blocked within our boundary last week and we utilised this and only had to pay the £60 excess. An added bonus to switching. Thank you."
  
  
• Could this get even cheaper - what about MSE Big Switch energy events? That's always possible: things are unfolding rapidly as the world oil price has dropped. We're working hard to try to bring you one of our regular special energy deals next week or the week after - and we'd want to undercut this tariff. Yet while we've a few potentials, it's not in the bag, and with the situation changing at speed, there's nowt wrong with deciding you prefer a bird in the hand.
  

MARTIN'S WARNING TO ANYONE OVERDRAWN
This Sat HSBC, First Direct & M&S start charging around 40%. Within a month Barclays, NatWest, RBS, Santander, Lloyds & Halifax will follow

Cut your overdraft NOW - it's costlier than credit cards  

Overdrafts are the new danger debt - double the interest of high street credit cards. Last year the regulator, the FCA, ruled that from 6 April this year, all banks must replace daily/monthly fees with a single interest rate to improve transparency. It has succeeded - the new rates are transparently hideous. Yet it failed in its other aim, to boost competition. Almost every bank will now charge around 40%. Nationwide's rate changed in Nov - this week HSBC, First Direct & M&S do it, and the rest will roll out imminently. 

• Winners & losers? The worst hit are those with large, authorised overdrafts of c.£600+, who could see costs double. Those who just occasionally dip into overdrafts, or only have small ones, will find this new system cheaper if they used to have daily fees. Those with unauthorised overdrafts (ie, bust your limit) will pay less, as banks can no longer charge more than they do for authorised overdrafts. See full bank-by-bank overdraft changes.   
  
  
• SLASH OVERDRAFT COSTS TO 0%. Anyone overdrawn should look to lower the rate - then what you save can be used to clear the debt, and hopefully avoid you needing an overdraft again. Full help & eligibility criteria in 0% overdrafts, but here are 4 brief options:
   
  - Free £100 and £250 0% overdraft. Most accepted First Direct* customers get a £250 0% overdraft and a FREE £100. For overdrafts under £350, or those who just dip in, as the £100 clears some debt and the rest is interest-free, it's a winner. Above £250, you'll pay the 39.9% EAR variable interest from Sat. To get the free £100, you need to pay in £1,000+ within 3mths (you can always withdraw it the next day).
  
  - Larger 0% overdraft but only for a year. New Nationwide FlexDirect* switchers can get a year's 0% overdraft (39.9% EAR variable after). The limit depends on your credit score, but it can be large. Use the year to clear the debt.
  
  -  Shift to a 0% money transfer card. Special 0% money transfer cards will pay possibly £1,000s into your bank account to clear the overdraft, so you owe them instead at 0%. As it's easy to get wrong, click the link for full info.
  
  - Cheapest standard overdrafts. Two app-based banks may offer cheaper standard overdraft rates. Starling* is 15% to 35% EAR variable, Monzo* 19% to 39%, depending on your credit history. While not 0%, the cheaper rates can cut costs for those on larger overdrafts. You can check if you're likely to be accepted before applying.
  
  
• What if I can't get 0% and costs are a nightmare? After I and others lobbied, the FCA recently wrote to banks asking 'why are you all charging the same' and telling firms to take 'positive steps' to help customers left worse off. This likely sets up a standard industry practice, meaning the ombudsman can rule on it if banks don't follow it. So ask your bank for help, especially if the change contributes to financial hardship, as it should consider offering alternatives (eg, waiving interest or cheaper loans) and if not, take it to the ombudsman. See how to talk to your bank incl template letters.
  
  
•  7 quick overdraft cutting tips. It's not just about making it cheaper, you need to manage your overdraft.
  
  1) Aim to repay a fixed amount each month. Treat it like any other debt to be repaid. Eg, if you're £500 overdrawn, 'paying' £100 means next month aim to be £400 overdrawn. Doing a budget will help.
  2) Got other debts? Prioritise paying off the most expensive first. Eg, if the overdraft is, as is likely, costlier than credit cards, repay the minimum on those and use spare cash to lower overdrafts. See which debts to pay first.
  3) Consider moving direct debits to just before, not after, payday. You'll be overdrawn for less time, so costs are lower.
  4) Got savings? Don't be afraid to use them to clear your overdraft. See Repay debt with savings?
  5) Struggle to control spending? Consider shifting to a non-overdraft account. See Basic Bank Accounts.
  6) Can you reclaim past bank charges? If charges caused hardship, you may be able to reclaim them.
  7) Struggling with multiple debts? Get non-profit debt counselling help from Citizens Advice, National Debtline or StepChange. It can make a huge difference. Full info in Debt Help.