Don't Let Loyalty Cost You Cash

It’s a quality most of us prize in friends, but when it comes to your bills, does loyalty really pay?

- Andy Webb

You’d hope businesses would value our loyalty. It only seems fair that we should get something in return for our repeat custom.

Yet, sadly, it’s now well established that when it comes to our money, sticking with the same supplier will often mean that you lose out when compared to shopping around.

Brands often reserve their best deals for new customers (but even they lose out when introductory discounts end and prices jump). And future year-on-year increases for all who auto-renew can quickly creep up and up.

As a result, eight in ten people are overpaying for at least one of the following: broadband, mobile, home insurance, savings or mortgages, according to Citizen’s Advice.

Though regulators are cracking down, some of the new measures that have been introduced or mooted are voluntary or yet to start. Or they might simply be forcing companies to tell you when prices are increasing and by how much.

That means that to guarantee savings it’s best to do something yourself. So is “ditch and switch” always the smart option? Generally yes, though not always.