Giffgaff launches improved SIM-only plan

The SIM-only plan offers customers the best of both pay as you go and contract deals in hybrid `goodybags'.

SIM-only plans can be a great solution if you don’t want to be locked into a 12- or 18-month contract, but still want the benefits of a pay monthly scheme; things like free calls, minutes and data allowances.

Most networks offer this service now, allowing greater flexibility for mobile phone users with short, 30-day contracts.

Giffgaff has gone a step further, launching a SIM-only package that claims to truly hybridise the benefits of a contract with pay as you go.

Giffgaff? Who?

Giffgaff is a mutual mobile operator which manages to keep costs low by getting members to help grow and run the business through advice forums and suggestions.

The company reviews ideas from users on a weekly basis and out of 7,000 that have been submitted so far, over 300 have been implemented.

Recurring goodybags

Giffgaff ‘goodybags’ have been around for some time now, but unlike other SIM-only plans, they behave more like a pay-as-you-go top up, meaning you have to renew or buy the deal each month.

With a recurring goodybag (an idea suggested by a customer) users now have the option to auto-renew their chosen deal.

So what exactly can you get in a recurring goodybag?

There are a range of goodybags available to suit your budget that consist of a mix of calls, texts and data usage. Take a look at the five deals available for your mobile phone in the table below.

*If you have a Blackberry you can access the services for an additional £3 a month.

It is clear from the table that giffgaff has been very generous to users with four out of the five deals offering unlimited text and data allowances.

But it's the utilisation of traditional pay-as-you-go benefits that sets the new packages apart.

The best of pay as you go

Usually a SIM-only plan (and contract plans too) will offer a range of calls, texts and data allowances, but should you exceed any of these limits you are charged at the standard rate. That means you might get an alarming bill at the end of the month if you natter more than usual. There's no such danger of this with pay-as-you-go deals, as once the credit has gone, you can't make any more calls until you top up.

With the goodybags you won’t have to worry. If you exceed the calls allowance on any of the plans, you will have to top-up to continue using the phone on the standard rates; avoiding a nasty surprise at the end of the month and putting you in full control of your spend.

The standard rates are not too bad either. Calls to UK mobiles and landlines cost just 10p a minute, which is a real bargain compared to other networks that are nearer the 35p mark for landline calls and much more for mobiles.

Free calls

Even better with a giffgaff deal calls are free to 080 and 0500 numbers that usually catch mobile phone users out with big charges.

If your friends and family are giffgaff members, you can benefit from free network-to-network calls, but only if you used a goodybag for at least three months. The free calls last for 60 minutes per call, so you need to hang up and re-dial if you want to keep talking for free.

Also, unlike other similar SIM-only deals, if you choose to cancel (which you can do at any time) your SIM will remain functional as a pay-as-you-go SIM until you are ready to start using it again, cutting out the hassle of signing up repeatedly and having to get a new number.

SIM-only mega deals

Here are some of the best SIM only deals I could find for a short 30 day commitment where you can enjoy big data allowances, lots of free minutes and lots of free texts.

Choose the right plan

For some people, bigger is better.

No-one likes to be caught out by going over their allowance in a month. I know I like to create a buffer to prevent this from happening and am attracted by big allowances or unlimited deals, but if you don’t use some or all of your allowances up each month you could be wasting your money.

A cheaper plan may work better for you and still offer everything you need to keep connected.

More mobile phone stories:

Compare phone deals at Recombu

Smartphones are new source of debt worry

Your rights if you change your mind

Avoid this mobile phone bill shock

Sim-only tariffs: how I saved £234 on my mobile bill