Donna Werbner reveals her top pick of mortgage deals, ISA and interest-free credit cards.
Whether you want a mortgage, an ISA or an interest-free credit card, if you're a Fool (with a capital F!), you'll want to make sure you're getting the best deal.
The good news is, you have a wide range of products to choose from - and the bad news is, you have a wide range of products to choose from!
Finding the right deal at the right rate to suit your individual needs and circumstances is a bit like looking for hidden treasure at the bottom of the ocean. You've got a vague idea of what you want (your treasure map). And you know there are lots of best buys in the comparison tables on websites like The Fool (your treasure-hunting ship). But despite this, you're lost at sea, wondering which direction to take.
But don't despair! Help is at hand, in the form of a dark-haired young lady with a mysterious eye-patch and a clunky wooden leg.
OK, so I made up that last part about the leg. Yes, and the bit about the mysterious eye-patch. I think perhaps I got a bit carried away there.
Anyway, the point is: I'm here to help. And that doesn't mean I'm going to provide you with another load of choices. I am actually going to tell you which of the deals that are currently available are, in my opinion, the best ones to go for - and I'm also going to explain why, and who they would suit.
Remember, though: this is only my opinion. I can't guarantee these products will be right for you and your circumstances. But I can promise they're worth a look.
Cracking Credit Cards
A lot of you come to The Fool looking for a new credit card that will not charge you any interest on your balance and an interest-free card to buy new purchases with.
What many of you don't realise is that these sorts of cards can hide a nasty sting in their tail: negative payment hierarchy.
This is a complicated, sneaky trick dreamt up by credit card companies to ensure you pay off your cheap, interest-free balance before your more expensive, interest-earning debts.
The exception to the rule is Nationwide's Gold Credit card. This card offers 0% on balance transfers for 10 months and 0% on purchases for three months - but after those three months are up, Nationwide allocates your payments in a way that is favourable to you. In other words, you pay off the debt that you are charged interest on first, before the interest-free balance.
This can potentially save you hundreds of pounds in interest payments, and is extremely unusual. In fact, Nationwide is the only major high street lender to do this.
Also take a look at Halifax's One Card which gets round the problem of negative payment hierarchy in a different way.
A Magnificent Mortgage
Last year, in How To Cut Your Mortgage By £127,447, I explained why I am a big fan of offset mortgages. Unfortunately, many people steer clear of these innovative deals because they don't understand how they work or because they are unfamiliar with the concept.
But if you have savings or plan to save, then I would urge you to read my article to find out how an offset could potentially save you a lot of money.
Right now, there's a particularly competitive offset deal available from First Direct which, if I was remortgaging this month, I would definitely consider. It offers an extremely low 2-year fixed-rate of 4.75% - the most competitive fixed-rate currently available - and you can offset your savings, your current account and even a personal loan.
On the down-side, you do need a 20% deposit and the arrangement fee is high: £1,498.
However, the benefits of going for this deal could be immense. For example, if you had £50,000 worth of savings and took out a £200,000 mortgage on an offset basis over 25 years, you would save around £80,000. (You could apply for this deal via our mortgage service.)
If you'd prefer a variable rate, I'd recommend considering a lifetime tracker from the Co-operative Bank or Newcastle Building Society. Both are offering lifetime trackers at competitive rates via The Motley Fool Mortgage Service. And both come without any early repayment charges - so you can remortgage at any time without paying any penalties.
What's more, because it's a lifetime tracker, you'll never move onto the lender's expensive Standard Variable Rate. So this is a good deal for any borrower who prefers not to have to remortgage every few years.
A Sensational Cash ISA
It is now less than a month before the tax year ends, and that means if you do not use up your tax-free savings allowance soon, you will lose it altogether.
Barclays is currently leading the market, with an instant-access cash ISA paying 6.5% interest every year. But personally, I wouldn't be tempted to open this account. It doesn't allow transfers in and the 6.5% interest rate includes a 1% bonus for 12 months.
So, in a year's time, this ISA is may not be very competitive at all. What's more, there is no guarantee that Barclays will not reduce its rate dramatically once the competitive ISA season is over.
I hate leaving my money in an account with an uncompetitive savings rate - but I also hate the hassle of transferring money between ISAs. So, despite the fact that it offers a slightly lower interest rate, I'd opt for a 6.1% cash ISA from Icesave instead.
The reason I like this ISA is because Icesave allows transfers, and it also guarantees the interest rate on this account will beat the Bank of England Base Rate by at least 0.3% until 31 January 2011 and at least match Base Rate until 31 January 2013. I like being guaranteed a competitive rate over the long-term, so this is the ISA I would choose.
Shop Around
While I would encourage you to check out all the deals I have mentioned, there really is no alternative to shopping around yourself for the best deal to suit your individual needs and circumstances.
Hopefully I've given you a few ideas, however. Shop around armed with this information, and you should be able to avoid the booby traps, strike gold with a fantastic deal and sail off happily into the sunset.
You won't even need a parrot.