How to haggle

With British businesses desperate to get some cash into the tills and more willing than ever to compromise, you can save a lot of money with a bit of crafty negotiation.

This article looks at how to negotiate down the prices of products and services so that you can get what you want at (or at least closer to) the price you want it.

Choosing the right products

With almost everyone tightening their belts, it's important to think carefully about the products we buy and be sure that they will serve us well, while at the same time getting the best value for money.

Whether you're looking to buy a new toaster or a new television, this article is for you.

Finding cheaper car insurance

Finding the right car insurance at the right price can always be a bit of a trial, but help is at hand!
 
Pennysitter welcomes its first contributor, Agent Orange. He is an insurance representative by trade, and we're sure that his tips and insider knowledge will go a long way in helping you to find the right insurance for your vehicle.

Improvised insurance

Insurance policies are an expensive way of giving yourself peace of mind for when a rainy day rolls around. 

It's often the case that you won't need to make a claim. Even if you do need to claim, you may have to pay a large excess charge and your premiums will likely be increased. After all, if insurance companies didn't make more money than they paid out, they wouldn't last for very long!

In this article we will be looking at improvised insurance: a way of giving yourself some peace of mind while cutting out the insurance companies.

Make do and mend - stain removal

On this week's make do and mend we're going to be looking at how to remove stains from fabrics.

How many clothes and sheets have seen a premature departure to the rubbish tip because of a stain? By learning how to deal with such stains you can make your fabrics last longer and this will save you money in the long-run.  
 
There are plenty of commercial stain removal products on the market, but these are often very expensive and rarely deliver as promised. Instead, where possible, we will be looking at tried and tested home remedies that won't hurt your pocket. 

Using less of toiletries

How many times have you used an entire handful of shampoo only to wash it all out just a few seconds later? How many times have you used enough body-wash to bathe a hippo? How many times have you drawn an inch-long strip of toothpaste over your brush?
Whatever toiletries your bathroom rituals are composed of, chances are good that you use far more of them than you really need to.

Money for gold

The value of gold is higher than ever before, so there's never been a better time to rummage through your jewellery box. The market, however, is saturated with companies grasping for your gold, and some of the more unscrupulous of these will take advantage of the unwary.

This guide looks at how to track down your gold, and how to sell it for the best possible price. 

The rules of shopping

The high-street and the internet are packed with temptations and devious psychological tricks in an attempt to part you from your hard earned cash. The rules of shopping are there to make you stop and ask questions before you make purchases on an impulse.


The Rules
Whenever you're shopping and you see something that you want to buy, ask yourself the following questions:

Can I afford it?

Do I need it? / Will I use it?

Is it value for money?

When you ask yourself whether or not you can afford a particular purchase, you should be thinking about your necessary expenses like food shopping, bill payments, and any loan/credit card repayments. If you need to borrow money to do this, the answer is: NO!

When you ask yourself whether you need it or are likely to use it, try to be realistic. The item might not work as well as it claims, or might not last as long as you expect it to. Also think about what else you could afford to do with the same amount of money. There are also specific considerations dependant on the kind of product; for example, if you're attempting to body-build or lose weight, spending a lot on clothes that might not fit you for long is not a good idea. 

When considering whether something is value for money, think about similar items offered by competitors and what advantages are offered over them. Try to be objective and don't just look at the label. Designer clothing is particularly notorious for being poor value for money, because the quality is often (though not always) no better than much cheaper generic brands - even designer products are sometimes made in sweat-shops!

If your answer to ANY of those questions is 'No', walk away and don't look back. Congratulations, you've avoided an impulse buy.

If you answered 'Yes' to both of those questions, ask yourself:

Can I get it cheaper somewhere else?

Is it reasonable to buy a cheaper make / brand?

Can I get a discount?

What did other buyers think?

Where possible, you should price compare before committing to buy. You can find out how to do this by looking at our how to price compare article.

When considering whether it is reasonable to buy a cheaper make or brand, it's important to take an objective look at the advantages and disadvantages of one product over another. Try not to be swayed by superficial qualities if it is actually the function that is most important. For more information on cheaper brands, take a look at our going down a shelf article.

It is always worth asking yourself whether you can get a discount. The approach will obviously vary depending on the type of product you're looking to buy. 

• For grocery items, there may be coupons available either online or in supermarket magazines.
• For most other items there may be exclusive online prices available that are cheaper than those found in stores.
• For fairly expensive items (over £50), it is not unreasonable to attempt to haggle for a lower price. However, this can only be done face to face or over the telephone and does not typically apply to online purchases (with the exception of private sales).  Never be afraid to haggle: the worst they can do is say 'no'.
  

Finally, it's always worth taking a look at what other buyers thought of the product you're considering. There are an increasing number of forums and websites where customers can  leave reviews detailing their experiences with a product: from cans of soup to luxury holidays, you can find reviews on just about anything. These reviews vary in quality and it will usually be quite easy to see which you should be paying attention to and which should be brushed aside. Of course, not everyone has the same experience with a particular product, but be on the lookout for patterns such as common defects.

Conclusion

Think before you buy and don't be tricked into spending more money than you want or need to. Consider all the other options and find out what experiences other buyers have had. If you do decide to make the purchase, consider whether you can get it somewhere else or if you're entitled to a discount.

The penny jar

After a hard day of shopping your coffers are likely loaded with copper and silver that will wear their way through even the toughest pockets and make you sound prematurely Christmassy as you jingle merrily along.

These coins, once unloaded, have a nasty habit of disappearing down every nook and cranny, so it can be useful to have a jar or other container that you can dump your coins into without really having to worry about them.


What can I use?
Some people use jars, some use empty giant whiskey bottles (no, making a penny jar is not a good excuse for buying one!), some use traditional piggy banks or tin cans. It doesn't really matter what you use as long as it's big enough to hold all the shrapnel that your favourite stores so enjoy landing you with.

Some people like to use containers that they can't open until it's full like a ceramic piggy-bank that must be smashed open or a tin can that requires a tin-opener. This can be a useful way of saving up for something specific, but it also means that your cash could be left sitting at home when it could be in the bank gaining interest - however slight.


What to do when it's full
Finding the penny-jar full can be both exciting and daunting. Chances are there could be upwards of fifty pounds in there, but the prospect of counting and bagging it it all up to find out can hardly seem worth it. There are, however, other methods.

The company Coinstar offer change counting machines that are easy to use and are usually placed in convenient places like supermarkets. However, there is a catch: Coinstar deducts around 8% for the convenience: that's eight pence from every pound; eighty pence from every tenner, and eight pounds for every hundred.

Some branches of the HSBC offer coin-sorting machines to account holders. The machines deposit the funds into the elected account without any deduction. After that is done, there's nothing to stop you from deducting your money straight away. Of course, this is only a convenient option if your local HSBC carries a coin sorting machine.

Alternatively, you could purchase a coin sorting machine of your own. Check out Penny's Shop to see some of the models available. All banks offer coin bags free of charge so, once sorted, the coins can be taken straight to the bank. It should be noted, however, that the most functional of these tend to be fairly expensive in themselves, and the idea of spending pounds to count pennies can seem counterproductive.


Bank it
With today's interest rates for online savings accounts, it's not unreasonable to expect 3%: 3p a year for every pound. It may not sound like much, but it's not unusual for people to find that their penny jars contain hundreds of pounds - hundreds of pounds that could have been making something as opposed to nothing. Put simply: don't let your money sit around in jars and shoe-boxes for too long.


Conclusion
Look after the pennies and the pounds will look after themselves. It's surprising how quickly shrapnel can add up into serious money, so do yourself a favour and keep all of it in one place. Once you've collected a fair amount, consider sorting and banking them. 

Guilty pleasures - gambling

Everyone has guilty pleasures, often so named because of the disproportionate effect they can have on your finances. There's nothing wrong with any of these guilty pleasures in moderation, but with small changes to your habits you can make huge changes to your bank balance.

For today's guilty pleasure we'll be looking at gambling.


The house always wins
Regardless of your attitude towards it, there's no denying that gambling is an expensive habit. The odds are inevitably stacked against you and the old Vegas maxim almost always rings true: the house always wins.

The national lottery is no different to this. Remember: "It could be you!", but 13,999,999 times out of 14,000,000 it won't be.
 

Never, ever, attempt to use gambling in an attempt to escape from financial difficulties. In all likelihood, you'll only make the situation worse. Instead, speak to a free, qualified and independent debt adviser such as those offered by the CAB. No debt is insurmountable.

Gambling is addiction forming. Not everyone who gambles is an addict, in the same way that not everyone who has a glass of wine on the evening is an alcoholic. It is, however, important that you're able to recognize a problem if one exists.

The most effective way of saving money would be to stop gambling entirely, but some people enjoy the thrill that comes along with it. Pennysitter is about saving money without taking the enjoyment out of life. For the most part, this article will look at keeping things in moderation, gambling only as much as you can afford to lose, and establishing discipline.

If you feel that gambling is becoming a problem for you, or you are concerned about the gambling activities of a family member or friend, you can visit Gambleaware.co.uk which features useful expert advice on how to better manage a gambling habit.  

Remember, you don't have to stop to save money. In fact, even the smallest change to your habit can have a massive impact on your long-term savings. Every pound saved is a pound earned.


Setting limits
"I'll stop after the next win."
"The next go could be the lucky one."
"I almost had it! Just a little more..."
"It's ready to pay out!"

If these thoughts, or thoughts like them, are familiar to you, it's likely that your self discipline could use a little work. It's all too easy to be drawn into gambling - it's designed and contrived to do just that - but it is important to know when to stop and only spend what you can afford to lose.

This has become much more difficult since the arrival of online gambling. Once upon a time it would have been a case of keeping yourself from entering the casino, but at just a keystroke away the temptations can be more overwhelming than ever before.

Before you sit down to gamble, work out how much you can afford to spend and do not exceed it no matter what happens. If you're gambling online, it can be more difficult to keep track of your money, but be vigilant. Remember: losing does not increase your chance of winning - there is no prize 'waiting' for you. If you are winning, learn to quit while you are ahead.
Always keep a diary of how much you are spending on gambling games, and how much you are winning. At the end of each month, add up each and compare. The figures may be eye-opening. Even if you don't wish to stop or cut down, it is still useful to at least be aware of how your money is moving.


Bargaining
You can still save money by seeing gambling as a form of currency in negotiations with yourself. By making yourself choose between two things you want / want to do, you are still going to save money in one way or another.

No matter what you're doing to cut your daily spend, bear in mind that every pound saved means £365 a year that you can keep as financial security or for treating yourself at the end of the year.


Conclusion
Gambling can be a fun thrill, or it can destroy your life. Find out where you need to draw the line and draw it thick. Remember, you don't have to stop to save money. In fact, even the smallest change to your habit can have a massive impact on your long-term savings. Every pound saved is a pound earned.

Couponing - Groceries

Coupons that offer money off particular products or for shopping at particular places can be a great way of saving money.

This article looks at coupons that you can use to cut the cost of your grocery shopping: both how to find them and use them.


Where to find them
Tracking down coupons can be a bit of a treasure hunt. You're never sure where you're going to find them or, indeed, what you're going to find. You can typically find coupons:

• In newspapers as part of an advertisement.
• In free supermarket magazines.
• On product websites.
• At specialist coupon websites.

With regard to the latter, Penny has been scouring the internet and came up with the following finds:

• Moneysavingexpert.com
• Beforeishop.co.uk
• Britainsgreatest.co.uk
• Groupon.co.uk

Check them out, but be sure to browse safely!


Putting them to use
Most coupons are very easy to use. Just hand them over to the cashier before they begin scanning your items. If you're using a self-scan machine, there will usually be a special page for entering coupons; if you have difficulties, ask a member of staff who will be happy to help you.


Location, location, location
Some coupons limit where they can be redeemed. This is especially true of those found in free supermarket magazines: typically the vouchers can only be used in branches of that particular supermarket. Sometimes even particular branches are excluded, so be sure to check the small print carefully. 


Time limits
Most coupons feature expiry dates. Some of these can be quite generous, offering several months for redemption. Others can last only a week or even just a day. If you're considering using a voucher, it's important to check that it hasn't yet expired.

If you take to couponing as a hobby and become a seasoned coupon collector, it can be helpful to file them away by reference to their expiry dates. 


Points to note
Saving money with coupons is all good and well, but there are a few things that should be borne in mind:

• Most coupons cannot be used 'in conjunction with any other offer'. If the item in question is on special offer already, consider whether the coupon is really worth using instead of that offer. 
• Don't be tempted to buy things that you wouldn't normally buy except as a replacement for something you normally buy.
  
  

Conclusion

Couponing can be a useful (and sometimes fun) way to save money on your groceries, but due to their very nature they are not an especially reliable method of cutting your costs. Find and use what you can, but don't go to more effort trying to find them than they are worth.

Easy tips to lower your gas bills

The price of utilities has risen sharply over the last year so it is now more important than ever to save money where you can.

In another article we'll look at how to price-compare for gas providers, but this article looks at small life changes that can help to lower your gas bill.

There is a notable difference between gas use and gas waste. These tips will concentrate on the latter so that you can cut the costs without massively overhauling your lifestyle.
If you need to recap anything you've read, or would like a quick summary of tips, you can scroll down to the Recap section at the bottom of this article.


Feeling warm inside
Turning your thermostat down by just one degree can have the impact of knocking almost 10% from your gas bill: approximately £46. How low can you go?

Instead of trying to tackle the slightest chill by whacking the heating on full, consider wearing more layers or wrapping yourself in a throw or blanket.

If you are leaving the house for an hour or more, turn the thermostat down or off.


Keeping heat in
If you are using a gas fire, keep all doors shut, and fit the bottoms with draft excluders. This way you can better isolate the heat to where it's needed instead of it being wasted.
Thick curtains can also be useful to minimize heat loss when they are drawn. Consider drawing the curtains in the early evening.

Fitting silver-foil or other heat reflective material behind radiators can also increase their efficiency: this is because is prevents the heat from being uselessly absorbed into the wall and, instead, reflects it back into the room. According to Scottish gas, doing this can save you over £14 a year.

Having your home properly insulated can also go a long way in improving your home's heat efficiency and keeping the heat in. The best bit is that it might not cost you a thing: there are a number of insulation grants available (covering things such as loft and cavity wall insulation) for people in all kinds of circumstances, so it is worth contacting your local council to see if you are eligible for any of them.


Be efficient, buy what's efficient
Appliances are becoming increasingly efficient with the amount of fuel they use, so by keeping up to date with the latest in energy efficient technology, you can save a lot of money in the long-run. This is only worth considering, however, if you have sufficient capital to make such purchases.

Efficiency isn't just about technology. If you put a little thought into how you use appliances, you can cut pounds from your gas bill by being efficient yourself. For example, instead of using the oven for individual meals (assuming you have a gas oven), why not cook in bulk and freeze portions to eat later? It is more cost effective to cook a lot in the oven and microwave portions later than it is to cook everything in the oven individually. The same applies to using the hobs: instead of making enough spaghetti bolognese or soup to last just one night, why not cook in bulk? Not only will you cut money from your gas bill, but you'll have a convenient supply of home-made microwavable meals that can be ready in minutes.


Miscellaneous
Here are a few tips that didn't seem to fit anywhere else:

• If you currently receive a paper bill, ask your provider if you are being charged extra for that, or whether you could save money by receiving your bill online instead (if you have suitable access to the internet).  Some companies charge upwards of  £3 each time they send out a paper-bill!
• Changing your payment method can also reduce your gas-bill. Providers tend to be most amenable to customers who are willing to set up regular payments by direct debits. Ask your supplier how much they are prepared to discount you for this.
  
  
  

Recap

If you're serious about saving money on your gas bill:

1. Turn your thermostat down: even one degree can make a big difference.
2. Wear a sweater or snuggle up in a throw if things get a little chilly.
3. If you are leaving the house for more than an hour, turn the thermostat down.
4. Keep all doors shut and use draft excluders to isolate heat.
5. Hang thick curtains and draw them on the evening to reduce heat loss.
6. Fit silver foil or other reflective materials behind radiators.
7. Ensure your house is properly insulated. Check if you are eligible for grants to do so.
8. Invest in fuel efficient appliances. 
9. Minimize your oven use by cooking in bulk.
10. Switch to a paperless billing system.
11. Change your method of payment to a regular direct debit.

Guilty pleasures - drinking

Everyone has guilty pleasures, often so named because of the disproportionate effect they can have on your finances. There's nothing wrong with any of these guilty pleasures in moderation, but with small changes to your habits you can make huge changes to your bank balance.

For today's guilty pleasure we'll be looking at drinking.


Down the hatch
Regardless of whether you think it's a good thing or a bad thing, there's no denying that drinking is an expensive habit. Alcohol is becoming increasingly expensive, particularly following the minimum price per unit imposed in the UK markets.

The most effective way of saving money would be to stop drinking entirely, but realistically most people enjoy a drink. For the most part, this article will look at keeping things in moderation.

If you feel that alcohol is becoming a problem for you, or you are concerned about the drinking of a family member or friend, you can call Drinkline -the national alcohol helpline. It is a free and confidential service that is available 24 hours a day at 0800 917 8282. Additionally or alternatively, consider visiting Alcoholics Anonymous (AA) and DrinkAware.co.uk.

Pennysitter is all about saving money: there are plenty of other websites, as mentioned above, that deal with other aspects of drinking. You don't have to stop to save money: in fact, even the smallest change to your habit can have a massive impact on your long-term savings. The following example illustrates the effect that drinking just one fewer pint a week can have on your income.

• Example:
• 1 fewer pint per week (average: 2.50 each)= 52 fewer pints per year. 
• 52 fewer pints = big savings (average: 130 per year).

For a more accurate estimate of how much you are spending on pints, take a note of the price at your local pub or the typical supermarket price. 

It's always worth keeping a diary of how much alcohol you drink. Even if you don't wish to stop or cut down, it is still useful to have this awareness, and nobody has to see it.


Bargaining
You can still save money by seeing alcohol as a form of currency in negotiations with yourself.By making yourself choose between two things you want, you are still going to save money in one way or another.

No matter what you're doing to cut your daily spend, bear in mind that every pound saved means £365 a year that you can keep as financial security or for treating yourself at the end of the year.


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N.B. If you're trying to stop drinking or cut down, make sure you're doing so safely. Any reduction in the amount of alcohol you are drinking must be gradual, otherwise you could suffer severe side effects from withdrawal. To find out how to cut down safely and to find links to other support organizations, visit NHS Alcohol Support.

Priority & Non-Priority Debts

Not all debts are created equally. This article looks at the differences between priority and non-priority debts. The distinction is incredibly important.

Non-priority debts are those debts for which creditors (the people to whom you owe money) have far less power to enforce. Usually such creditors will have to pursue the debt through the courts if they wish to enforce them.

Whether priority or non-priority, debts should NEVER be ignored. If you are suffering financial hardship, it is imperative that all creditors are informed of this. 


Priority debts
Priority debts are so-named because repaying these debts needs to come before anything else. Such priority debts often have dire consequences such as the loss of utilities, repossession of your property, or even imprisonment.
 
Priority debts must be paid, and the consequences for not doing so can - as mentioned above - be severe. If you cannot afford to make payments in full, it is vitally important that the creditor is contacted and informed of your financial circumstances. It will usually be possible to arrange for a lower monthly payment.

So what types of debts are priority debts? Priority debts include (but are not necessarily limited to):

• Mortgage payments.
• Rent arrears.
• Secured loans.
• Council tax arrears.
• Income tax and/or VAT arrears.
• Utilities arrears (other than water rates).
• Fines imposed by the magistrates' court.
• Child support / child maintenance arrears.
  

Clicking on each link above will take you to a further page which looks at the action you could take with regard to each type of debt. 

Remember, the general rule is that a priority debt is defined its potential consequences. The creditors that shout the loudest aren't always the creditors with the most power.


Non-priority debts
Non-priority debts are those which don't fall into the definition of priority-debts and include things such as:

• Unsecured loans.
• Credit cards.
• Store cards.
• Catalog debts.
  

Make no mistake that non-priority debts are, non-the-less, important and must not be ignored. However, non-priority creditors have to go to much time and expense if they wish to claw back money they are owed. For this reason, it is more likely that non-priority creditors will be amenable to accepting lower repayments.

Conclusion

If you don't have enough money to go around, it's important to know which creditors you should be giving priority to paying. If you fall into financial difficulty, it's important that ALL creditors are informed immediately so that negotiations can begin.

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NB: If you are in severe financial difficulty and feel overwhelmed by your debts, visit your local Citizens' Advice Bureau. Many CAB's receive special funding to provide debt caseworkers who can deal with your matter from start to finish. Further, the CAB and organizations like it have greater bargaining power when it comes to negotiating lower payments.

Dealing with priority debts: utilities arrears

YOUR SERVICES CAN BE CUT IF YOU FAIL TO PAY YOUR UTILITY BILLS.

If you're in arrears with utility bills, you should contact the affected service providers as soon as possible. Failure to do so may result in your service being cut off.


Making contact
Explain the circumstances of your financial difficulty. If these difficulties are only temporary, you can try to arrange for arrears to be paid off over a number of months. Alternatively, you could try to arrange for monthly payments to include a small element of your arrears.

With regard to certain utilities such as as gas or electricity, consider requesting a pre-payment meter. This will require you to pay for utilities, including arrears, before it is consumed. The use of a pre-payment meter will help you to better appreciate your fuel usage and will all but eliminate the risk of going into further debt on your utilities.


Additional considerations
If you are having difficulties budgeting, and are in receipt of the benefits bullet-pointed below, consider asking the DWP to make payments directly from your benefits (Third Party Deductions).

• Job Seekers' Allowance (Income Based)
• Income Support.
• Pension Credits.
  
  

If you feel that the utilities supplier you are with is too expensive and you are able to find a better deal elsewhere, you should consider price comparing and changing providers. Note, however, that changing providers does not release you from debts owed to your existing provider.

Dealing with priority debts: magistrates' fines

YOUR POSSESSIONS CAN BE REPOSSESSED IF YOU FAIL TO PAY MAGISTRATES' FINES.

If you're in arrears with utility bills, you should contact the affected service providers as soon as possible. Failure to do so may result in your service being cut off.


Making contact
If you re summoned to court, you should attend. You will be sent forms which you must complete and return. In particular, you will be given the opportunity to outline your financial circumstances. If a fine is imposed against you, you should request permission to pay in instalments given your financial circumstances.

Whether or not instalments are permitted, you will be ordered to pay the fine within a set time limit. If you are unable to meet this time limit, you can request a 'means enquiry'. This enquiry will take the form of a hearing (which you would have to attend) which will take account of your financial circumstances (whether or not the are different to when the fine was imposed) and a decision will be made as to how the fine should be paid.

 
Additional considerations
If you discover that bailiffs have been instructed, seek advice immediately! The CAB are often successful in obtaining a temporary freeze on recovery action while debt advice is sought provided you comply with their requirements. 

Dealing with priority debts: Child Support arrears

YOUR SALARY CAN BE GARNISHED, YOUR BELONGINGS CAN BE REPOSSESSED, YOU PROPERTY CAN BE PLACED UNDER A CHARGING ORDER, AND/OR FUNDS FROM A BANK ACCOUNT CAN BE SEIZED IF YOU FAIL TO PAY CHILD SUPPORT. 

If you're in arrears with making Child Support payments, you should contact the Child Support Agency as soon as possible.


Making contact
The purpose of contacting the Child Support Agency will be to reassess your financial circumstances and capabilities, and/or to negotiate how any arrears ought to be paid.


Additional considerations
If an order is made against you by the courts, you can apply for the court to consider your financial circumstances (which you will need to prove). The court may then, at its discretion:

• Write off arrears if it is satisfied that you fell into arrears through no fault or your own and, furthermore, you cannot afford to pay them; or
• Order that deductions are made directly from your salary (if you are in employment); or
• Direct a different method of payment such as direct debits; or
• Instruct bailiffs to seize your belongings (up to the relevant value); or

All about cash-back websites

Cash-back websites are popping up all over the place. This article looks at how you can save pounds and pennies without changing your shopping habits, simply by taking advantage of these websites.


What are they?
Cash-back websites partner themselves with traders such as Tesco and eBay and post links to their websites.  If you visit these traders through the cash-back website and subsequently make a purchase, the cash-back website will (typically) refund you a small percentage of what you have spent.


How do they work?
The partnered traders pay advertising and referral premiums to the cash-back website. In return, the cash-back websites can offer discounts for those traders to their own visitors, thus creating more advertising and referral income: it is a lucrative cycle for all involved.
Once you click on the link to the trader's website, any purchases you make during that visit are tracked. It takes approximately 14 days for the purchase to be acknowledged on the cash-back site, and often several weeks more for the payment to be authorized. As far as legitimate cash-back websites are concerned, these cookies are designed to record only details of your purchases.

Arranging insurance and other financial products through a cash-back website can be particularly lucrative, with some cash-back offers of £100 and above.

Almost all cash-back websites require you to sign-up as a member. Any cash-back you subsequently earned would then be credited to your member account. Membership is usually free, but certain cash-back websites (such as Quidco) charge a small annual administration fee.


Are they legitimate?
Conceptually, cash-back websites are legitimate. However, this doesn't mean that 'every' cash back website is legitimate. As with everything online, a degree of common sense is required: if something seems too good to be true, it probably is. Before signing up to a cash-back website, do some research and look for some reviews. Most legitimate cash-back websites are amiable to pay by Paypal or in the form of gift vouchers: DO NOT input your bank details without being absolutely certain of the website's legitimacy.
 


Some examples
Below you'll find links to some of the more popular cash-back websites. However, caution is still advised. 

• Top Cashback
• Quidco (charges £5 per year admin fee)
• Rpoints (Note: made a recent comeback following liquidation) 
  
   
  

Cautions

When dealing with any cash-back websites, the following cautions should be borne in mind:

• The cash-back is not guaranteed, so it should only be considered as a bonus. If one trader works out cheaper than another only by virtue of the cash-back, be aware that you are taking a risk.
• If a deal seems to good to be true, beware. 
• Earned cash-back as noted on the cash-back website only becomes yours once it is paid into your bank account. Most cash-back websites have a minimum earning threshold before they allow you to do this. If the cash-back website goes into liquidation, you could stand to lose any money that hasn't been banked (think of it like The Weakest Link!). 
• For the reasons above, you should bank any cash-back you have as soon as the threshold is reached. 
• Most cash-back websites work by using tracking-cookies. Clear your existing cookies regularly to make sure the website can make a clean track of your transaction. 
  
   
  

Conclusion

Used right, cash-back websites can save you hundreds of pounds without changing your shopping habits. However, not all cash-back websites are legitimate, and even those that are legitimate aren't 100% guaranteed. 

What is a bond?

The term 'bond' has multiple meanings in the world of finance so it's important that these meanings are not confused. This article looks at the bonds that are also known as time deposits, as offered by banks and building societies in the UK.


What is a bond?
A bond, or time deposit, is akin to a savings account in which money is locked away for a fixed number of years (typically 1-5 years) and subject to a fixed rate of interest. When this fixed period ends, the bond is said to have 'matured'. 


Pros and Cons
Bonds are characteristically subject to restrictions such as:

• Penalties (usually of 6+ months of interest) for early withdrawals.
• Permitting only a single deposit, or accepting further deposits only until a particular date. 

The interest rates offered by bonds will typically be the best available. Finding the right bond is, therefore, a balancing act between the interest rate you want to gain and the restrictions you're prepared to adhere to. As a general rule, the more onerous the restrictions are, the better rate of interest you're likely to receive.


Considerations
The main question is how much money you can afford to relinquish for years at a time. Even if you are living comfortably and within your means, it's impossible to know what might be around the corner and so it is unwise to commit all of your savings into a bond.

Equally, it is all but impossible to know what will happen to interest rates over the coming years. Though it seems unlikely at the time of writing, an improvement in the economy could drive interest up and leave you with your money bound to a comparatively pitiful rate. 

It should also be borne in mind that the £85,000 government guarantee also applies to bonds. If you are considering investing more than that, be aware that you will be taking a gamble if the bank or building society were to fail.


Conclusion
Before committing your money into a time deposit, make sure that you can afford to do so while making reasonable provisions for dealing with any unforeseen problems that may arise within the term. If you're concerned that you would not be able to leave the money alone for such a term, consider putting your money in an easy access savings account instead. 

How to price compare

If we were to get the best deal for everything we buy, it's estimated that we could save an average of 25%.  Price comparing may take a little effort, but it pays dividends. This article looks at some of the most popular price-comparison tools for shopping on the web as well as some useful tips for finding the best prices on the high-street.

Net a bargain online

Price comparison websites have been popping up all over the place lately. These websites are free to use and they work by comparing prices of multiple retailers. They earn their money by referring you on to the website from which you ultimately make your purchase. 

These websites allow you to compare prices for virtually anything from car insurance to video games, and are incredibly easy to use: they work in very much the same way as a search engine like Google or Yahoo.

Popular price comparison websites include:

• Comparethemarket.com
• Moneysupermarket.com
• Mysupermarket.co.uk
• Pricerunner.co.uk
• Kelkoo.co.uk

Some of these websites provide a wide range of price-comparison options whereas others are designed exclusively for comparing particular types of products such as credit cards or supermarket groceries. 

Be warned that the search results are not always 100% accurate. There may be differences in the price or the product itself (for example, a search for The Sims 3 may link to a guide-book for the game rather than the game itself) so it is essential to double-check the necessary details with your chosen retailer.

Some retailers are exclusive to certain comparison websites, and some retailers have opted out completely. This means that certain retailers may not appear on price comparison websites even if they in-fact offer the cheapest prices. For this reason, it is always worth carrying out individual checks on retailers that you don't see listed in your price comparison search.

High-street saving

Following the recession, the high-street has become a war zone of competition between retailers. For any given product, there are likely to be at least two or three suppliers available for you to choose from along a half-mile stretch. Sometimes to get the best deals you will have to do a little legwork (literally) and check what each store has to offer before committing.

Some stores will be amicable to price-matching. Usually this is restricted to a certain distance from the store in question and excludes internet pricing; however, if you have seen a price cheaper elsewhere (even online), and can prove it, it doesn't hurt to challenge the sticker-price and ask if the store is prepared to compete. 

If you're wanting to try your hand at haggling, the best time to attempt it will be near the end of each calendar month: most stores are particularly desperate at this time to meet and exceed their sales targets.