Save £180 a year with a SIM-only mobile phone tariff

Switch to a SIM only deal on your mobile and you might be surprised at how much you could save....

For many people, their mobile phone is their lifeline. However, the downside of owning a mobile is that they can work out to be very expensive gadgets - and yet they really don’t need to be.

Recently I decided that as my contract with O2 was coming to an end, I’d look for something cheaper. My mobile phone isn’t the funkiest model ever, but it does what I need it to so I’m happy to keep it for now. As a result, I decided it was time to switch to a SIM-only deal and save the pennies. And for £10 a month, I now get 100 minutes and unlimited texts – and given I am a textaholic, that suits me down to the ground.

The great thing about SIM only deals is that they literally do what they say on the tin. Providing you’re happy with your current mobile phone, you’ll simply be given a SIM to pop into your phone and off you go. Because there’s no phone included, these tariffs can work out to be significantly cheaper than traditional contracts.

What’s more, while traditional contracts require you to be tied in for 12, 18 or, most recently, 24 months, SIM-only contracts only tie you into a 30 day rolling contract – which means if something better comes along, you only need to give a month’s notice before you switch.

The top deals

So let’s take a look at some of the best SIM only deals from the top providers:

*Bolt on can either be unlimited O2 to O2 calls or unlimited landline calls.

**Online deal only.

As you can see, some of these deals are really worth considering as they’re great value for money. Personally, I think Virgin’s £15 a month SIM-only plan is a pretty good all-round deal, particularly if you need to access the internet regularly.

But it's not the cheapest deal out there. Virgin Mobile also offers an £8.50 SIM only deal which includes 100 minutes and unlimited texts. And at the more expensive end of the spectrum, it offers a £12 SIM only-tariff which includes 300 minutes and unlimited texts.

Giffgaff, however, also has some fabulous deals, and if you don't use your phone for calling, there's a £5 a month deal which just offers unlimited texts.

Meanwhile, T-Mobile offers 'Flexible Boosters' as an added bonus with all of its SIM only deals – you can choose from unlimited texts, unlimited internet, unlimited T-Mobile talk, unlimited landline talk, Euro 5 talk and text, EU & Australasia Talk, or USA & Canada Talk. So you can choose the plan that suits your needs best.

And if you’re wondering why I haven’t mentioned 3 in this table, that’s because it only offers one monthly SIM only plan for £10. This deal includes 100 minutes, 2,000 3 to 3 minutes, 3,000 texts, 1GB internet, and free Skype to Skype calls.

Look at the savings

So now we’ve looked at some of the best deals, let’s take a look at exactly how much you could save by opting for a SIM-only tariff.

In the table below, I’ve highlighted how a £25 a month 24 month contract compares to a £25 SIM only deal for each provider. I’ve also added a column suggesting which SIM only deal you could switch to with the same provider to get the equivalent package (but without the phone) for less. Note, I haven't used giffgaff in the table below as it operates slightly differently and there are no 24 month contracts.

*Bolt on can either be unlimited O2 to O2 calls or unlimited landline calls, or for contracts, web access.

**Online deal only.

So, as you can see, you do get a lot more for your money with a SIM-only deal. Not only that, but in most cases, switching to a SIM-only deal offering a similar package to that of a traditional 24 month contract will save you around £10 a month. Admittedly this might not sound like a lot, but over a year, that’s going to add up to £120! What’s more, you won’t be tied into a two year contract with a SIM-only deal, so you can switch to a better deal at any time.

And don't forget to have a think about whether you really need all those minutes and texts anyway – could you cut down by 100 minutes or texts a month? If so, the savings will be even greater.

Every little helps

Of course, it’s not just the major mobile phone providers that are offering some great SIM only deals. Right now, Tesco is offering some truly fabulous SIM-only tariffs which, in my book, knock the socks off the competition. Take a look at the following:

So for just £6 a month, you can get 100 minutes and unlimited texts on a SIM only tariff – this is far cheaper than any of the major mobile providers mentioned above.

And to give you an idea of how much you could save with Tesco, let’s say you’re on O2’s £25 per month contract with 350 minutes and unlimited texts. By switching to Tesco’s £10 a month SIM only deal, you’ll only have to sacrifice 50 minutes a month, and you’ll still get unlimited texts and three months of unlimited data – but the best bit is, you’ll save £15 a month or £180 a year!

The iPhone

Finally, if you have an iPhone, it’s worth noting you can still get a SIM-only deal. However, these deals will differ from the ones I have mentioned in this article – you won’t get quite so many minutes and texts for your money. But they are still well worth checking out!

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