Five financial tricks and five financial treats

We round up the financial treats worth bagging as well as the financial tricks to avoid this Halloween.

When it comes to our finances we want treats, not tricks.

So we’ve found five financial treats worth getting your teeth into and highlighted five financial tricks to be wary of this Halloween.

Five treats

First up are the treats. Here are five deals that can help improve your finances.

1. Pay no interest for 30 months

There are plenty of 0% balance transfer treats in our credit card comparison centre, with many lasting over 24 months. But the longest lasting deal around now comes from the Barclaycard 30-Month Platinum Visa. With this card you won’t have to pay any interest on your debt for two and a half years, so it’s the perfect tool to help you regain control of your finances.

2. £100 sweeteners

Switching current account now only takes seven days thanks to the Current Account Switch Guarantee. And banks have plenty of sweeteners to entice us to move. The 1st Account from First Direct for example offers £100 cash just for switching. The account also comes with a £100 customer satisfaction guarantee, which First Direct will pay if you decide to leave within six months of joining. Halifax is also offering a £100 switching bonus for moving to its either one of its Current, Reward or Ultimate Reward accounts. And it pays £5 a month on the Reward account so long as you pay in £750 a month, pay out at least two Direct Debits and stay in credit.

3. 4.8% personal loan that cuts out the banks

You can now borrow between £7,500 and £10,000 over three, four or five years at a representative rate of just 4.8%. It’s the cheapest personal loan rate going and comes from peer-to-peer lender Zopa. With Zopa you can cut out the middleman in the shape of banks and borrow directly from savers willing to lend.

4. 5% interest on your savings

It’s pretty hard to find a decent rate on a savings account at the moment. In fact the average rate on a no-notice easy access deal is a measly 0.66% according to Moneyfacts. But Nationwide has a savings treat worth grabbing in the form of its FlexDirect current account. That’s because it offers 5% in-credit interest on balances up to £2,500 – that's better than any savings account around right now. And because it’s a current account it acts like an easy access savings account because there are no limits on withdrawing your money.

5. Unlimited cashback at Amazon

From 1st November until 31st January new and existing Santander 123 Credit Card customers can earn 1% unlimited cashback when they spend at Amazon. This special rate comes in addition to the cashback you can normally get with the card which includes 1% cashback at supermarkets, 2% cashback at department stores and 3% cashback at petrol stations, TFL and National Rail. The 123 credit card comes with a £2 monthly fee, but you can get it fee-free for a year if you have or open a 123 Current Account when you apply. This account is a treat in itself too as it offers up to 3% cashback on your bills as well as up to 3% in-credit interest on balances up to £20,000.

Make the most of your money with our free, secure MoneyTrack budgeting tool

Five tricks

And here are five financial tricks you might want to steer clear of.

1. Loans that charge 5,853% APR

Payday loan companies offer people short of money a quick way to get cash. But borrowing via a payday lender is wildly expensive. Wonga.com, for example, charges a typical APR of 5,853%. Although this represents the cost of borrowing over a year and payday loans are meant to be given back as soon as you get paid, many have fallen victim to loans being rolled over and the interest pilling on beyond manageable levels.

There are much better alternatives to payday loans that can help you get out of a financial tight spot. Read The best alternatives to payday loans for more. You can also use our free and secure MoneyTrack budgeting tool to monitor your spending and find savings.

2. Standard energy deals

Around 70% of UK households are on standard energy tariffs. While these sound innocent they are often poor value and aren't protected from price rises. Energy companies put you on these tariffs when a deal comes to an end or if you don't ask for anything else. Four of the ‘big six’ energy companies in the UK (SSE, British Gas, npower and Scottish Power) have announced winter energy price hikes in the last few weeks of up to 10% and the other two (EDF and E.ON) are expected to follow suit any day now. These prices rises will impact those on standard energy deals. Switching onto a fixed deal is the only way to shield your household against price rises. The cheapest around at the moment is the First Utility iSave Fixed v9 April 2015, which will cost on average £1,170 a year until 30th April 2015.

Read: How to beat the winter energy price rises for more details of the best fixed-rate energy deals.

3. Tiny mortgage rates that come with big fees

Mortgage interest rates are tumbling thanks to the Government's Funding for Lending Scheme, which allows banks and building societies to borrow money cheaply, but the fees on some of these great looking deals are moving in the opposite direction.

Take the cheapest two-year fixed rate deal on the market from West Bromwich Building Society. It charges a tiny 1.48% interest to those with a 40% deposit, but comes with a whopping £2,494 fee. Adding this cost to your mortgage means you end up paying more than you would if you went for a slightly higher rate with a more reasonable fee.

For example the NatWest two-year fixed rate deal available to those with a 40% deposit charges a less appealing 1.94% but comes with a lower £995 fee. Based on borrowing £150,000 over 25 years, the deal from NatWest actually turns out to be over £700 cheaper over the two-year term than West Brom’s market-leading rate.

You can figure out the best deal for your circumstances using our mortgage comparison centre.

4. Paying for perks you already have, don’t need, or can get cheaper

Packaged current accounts come with a whole host of extra benefits if you’re prepared to pay a monthly fee. These include various insurances. However, these often don’t provide any extra value. The reasons for this vary but might include the fact that you're already covered elsewhere, you don't need cover in the first place or you can get the insurances cheaper buying a policy separately.

The Lloyds Bank Silver account, for example, charges £9.95 a month or £119.40 a year for European and UK travel insurance, AA breakdown cover, mobile phone insurance and card protection.  But if you have a home insurance policy it probably covers your mobile phone, while card protection comes free from banks anyway, and you can get separate policies for both breakdown cover and travel insurance for much less than £119.40 a year.

5. 'Teaser' savings bonuses

This one is a bit of a financial trick and a treat. Some savings accounts come with a temporary bonus (known as a teaser rate) that gives the overall interest rate a short-term boost. But these typically only last 12 months and after this period the bonus drops off and the rate on the account plummets. The BM Savings Online Reward, for example, will pay a market-leading 1.70% on savings for a year but after this time the bonus of 1.20% will fall away and leave your money earning just 0.5%.

Regulator the Financial Conduct Authority has said it will be looking into teaser savings rates, but they're not so bad if you keep track of them. If you don't want a tricky account like this you should go for one that doesn't come with a temporary bonus. You can find the top deals in our round up The best instant-access savings rates.

More on Halloween:

Cheap Halloween fancy dress costume ideas

Cheap Halloween food, costumes, decorations and more

Cheap and free things to do this half term