Never one to miss the chance to jump on a seasonal bandwagon, some banks have launched their "New Year Sales" but are these special offers all they're cracked up to be?
It's not just clothes and CDs that get marked down after Christmas - current accounts, mortgages and other financial products are being sold at knock-down prices by banks in a bid to get bargain-hungry customers through the door.
But as with any apparent bargain, it pays to read the small print to make sure you're getting as good a deal as the advertising suggests. In some cases you'll be better off shopping around.
Let's take a look at what's on offer.
HSBC
HSBC's "2009 Annual Sales" offers the following:
| HSBC Plus current account | Three months half price (down from £12.95 a month to £6.47) or six months half price if you register for online banking and "go green" online |
| Cash ISA | HSBC Premier and HSBC Plus customers only. Introductory Bonus on Cash ISA of an extra 0.25% AER interest for 12 months above the preferential Cash ISA rates |
| LifeChoices (a plan that includes life insurance and sickness benefits) | 50% off premiums for HSBC Plus and HSBC Premier customers for 12 months. 25% off premiums for all other customers for 12 months |
Is it any good?
HSBC Plus is a packaged account, the pros and cons of which are discussed in The True Value of Current Accounts With Benefits by fellow Fool Neil Faulkner.
He concludes that the benefits which come with HSBC Plus such as travel insurance, car breakdown cover and a paltry amount of life cover, are potentially worth it if you use them. But he also says the in-credit interest rate and overdraft rates offer by Alliance & Leicester's Premier Direct account make it a better option for many.
So, as with all packaged accounts, it all depends on whether you'll use the perks. If not, you'd be better off looking for an account that pays more interest when you're in credit or charges less when you're in the red.
HSBC's cash ISA pays 2.47% gross, including the 0.25% introductory bonus. This rate is nowhere near the top of the best buy tables. Despite savings rates falling, you can still pick up a cash ISA from Birmingham Midshires or Manchester Building Society which pays 4% - and unlike the HSBC offer which is only open to HSBC current account customers, there are no tied products.
Lifechoices is HSBC's life insurance and protection range. Again the biggest discounts require customers to have a HSBC Plus or Premier current account. Premiums will depend on your personal circumstances but my advice would be to shop around before buying any life or protection product - the best deals are often from standalone providers rather than banks.
Leeds Building Society
Leeds Building Society has kicked off the New Year with a "mortgage sale" and says it's reducing prices across its mortgage range. Deals include a three-year fix at 4.75% up to 75% loan-to-value (LTV) with a £999 fee, and a fee-free three-year fix at 5.45%, also at 75% LTV. The sale includes some discount mortgages but no trackers.
Arguably in the current climate of falling interest rates, homeowners would be better off on a tracker. But for those that want to fix, there are cheaper rates around. For example, Alliance & Leicester offers a 4.99% two-year fix at 75% LTV which has no fee whatsoever. Or if you do prefer a tracker, for a £594 fee, C&G has a two-year tracker at 4.59% (again you'll need a 25% equity stake or deposit to qualify for this deal).
So, as always, it's important to shop around for your mortgage and work out how much a deal will cost you once both the rate and fees are taken into account rather than being lured in by a special offer.
Other sales
Unlike other years, the other banks aren't putting up big banners advertising New Year sales - but they're cutting prices on some products all the same.
Alliance & Leicester is luring in new customers with the promise of £100 for switching your current account to the bank. New customers switching to Alliance & Leicester's Premier or Premier 50 current accounts will be eligible for the cash.
Natwest is holding a home insurance sale and offering 25% off your insurance premium for the first year. If you have a Natwest Advantage current account you're eligible for a further 10% off. However although this sounds good, the golden rule still applies: shop around and compare all the products on the market, taking discounts into account, before deciding on a provider.
Good luck nabbing a bargain!