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Sort Out Your Family Finances: Buying financial products

by Bob Reeves

We know that buying insurance is not as much fun as clothes shopping or buying a new car, but it can be just as important. There is a tendency to make quick decisions about what financial products we buy because it’s just too boring and confusing to read all the small print. However, taking the time and effort when buying a new financial product could be time well spent.

Many of us end up buying all of our financial products from the same provider, usually a bank. The banks know this which is why they entice us with juicy offers, such as attractive savings rates. Once we have bought into that they know they will go to them for other things. This is not necessarily a bad thing for us as customers but it is always worth shopping around and considering switching from time to time.

With low value financial products you might consider that it is not worth spending that much time shopping around and you might be right. However, with larger value products such as mortgages, investment and pensions, you could lose or save thousands of pounds over the life of the product.

The advice for which company to choose is the same as it is for non-financial product. For example, you would probably only go to a mechanic if they have been recommended to you. You should try and do the same thing with financial products. Other sources of information and advice are at hand. There is a lot on the internet and you could use an independent financial adviser.

In summary though, take the time and effort because it is worth it in the long run.


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