How to make money and save money from the extra day in a leap year
Use the 29th of February to cut your costs and earn some extra cash.
It's a leap year, and that means February is a day longer yet we're all paid exactly the same.
It's a pain, but you can use that extra day as an opportunity to boost your finances.
Here are our top steps for cashing in on 'leap day'.
Get a current account that works for you
Most standard current accounts tend to come with two features: a paltry rate of interest when you're in credit, and an eye-watering overdraft rate for when you dip in the red.
But there are a few exceptions. So why not spend a few minutes finding a bank account that suits your needs and not your bank's. It could end up saving you a fortune.
For example, if you have a decent balance then you should be earning interest on it. Both Nationwide and TSB pay 5% on balances of up to £2,500 and £2,000 respectively.
Alternatively plenty of accounts will offer you a cash bonus just for opening the account. Halifax is paying £125 if you apply before 22nd March, while Clydesdale Bank and Yorkshire Bank will pay a whopping £150.
Check out The best bank accounts for cashback for more.
Clear your credit card debt cheaply
It's a similar story with credit cards. According to Moneyfacts, the interest rates on credit cards has hit a record high of an incredible 21.6% APR. Yet there have never been such lengthy 0% deals on offer, on both spending and balance transfers.
For example, if you have a big purchase on the way you can avoid interest for a whole 27 months with the Post Office Money Matched Credit Card. Or if you have a big balance to clear, you can pay it off in bitesize chunks for an incredible 40 months with the Halifax 40 Month Balance Transfer credit card (with a 2.85% fee).
Be sure to read The best 0% purchase credit cards and The best 0% balance transfer credit cards for more.
Sign up for a supermarket loyalty card
If you regularly shop at a specific supermarket, find out if they offer a loyalty card or rewards programme. If you're going to spend money there anyway, you might as well get something back.
You could also consider using a cashback credit card to maximise your shopping – as long as you follow the golden rule of clearing your debt in full each month. Otherwise the hefty interest rates will more than cancel out the rewards you get.
With the Santander 123 credit card for example you earn 3% cashback on fuel spending, 2% at department stores and 1% on supermarket shopping. There is a £3 monthly fee to bear in mind though.
Read The best cashback credit cards.
Set reminders for auto renewal dates
Whether it's for home insurance or a magazine subscription, you need to make a note of your auto renewal dates in order to avoid massively overpaying.
Insurers often reserve their lowest premiums to attract new customers, while relying on the inertia of existing customers to bulk up their profits. Set a calendar reminder for when any policies – or subscriptions – are set to expire and shop around before you're hit with the 'loyal customer' price hike.
Check your direct debits
While you're rooting through all your financial documents, check your bank balance and see if you're still paying for any products or services you no longer use.
Sell your old stuff
Get your spring clean underway – and earn yourself a few quid – by putting any old tat you no longer need on a site like Gumtree or eBay. Read How to sell successfully on eBay.
Or if you simply want to free up space in your home, sites like Freecycle could be useful.
Switch energy
In truth this is one you should have done before the costly winter months to get the maximum benefit, but better late than never.
Ofgem says households could save around £200 a year by switching to a better deal. Check out the best buys over in our article The cheapest gas and electricity tariffs, and head over to our energy comparison centre to see which energy deals are available in your area.
More on saving money:
Comments
Be the first to comment
Do you want to comment on this article? You need to be signed in for this feature