As good consumers, we seek value for money. When choosing financial products good value should be a guiding light, writes FIONA REDDAN

IF THE thought of shopping for a new life assurance or car insurance policy is about as appealing as a visit to the dentist, but you love finding a bargain, then you need to shop for financial services like you shop for everything else – seek out the lowest cost, best-value products and look for something extra thrown in.

Remember, it is not just shops which offer discounts, financial institutions also offer incentives to attract customers. But, without annual summer and winter sales, how do you find the best deals?

Watch out for special offers

JUST LIKE supermarkets, financial institutions also make special offers available from time to time, although be warned that sometimes they may just be trying to get rid of the financial equivalent of over-ripe melons.

Until September 12th, EBS is offering a fixed annual rate of 3.75 per cent for five months on deposits of between €20,000 and €500,000. So, if you put €20,000 away for the five-month term, you would recoup €312 in interest before Dirt. While the term is short, variable rates have begun sliding, so this product offers certainty for the five-month period.

If you are looking for an investment fund, check out Rabodirect, which offers discounted fees on its “fund of the month”. For September, the chosen fund is the Robeco Emerging Stars Equities Fund, which invests in a concentration of the most attractive emerging countries worldwide. The fund invests 67 per cent in domestically oriented companies and the remaining 33 per cent in those more focused on global markets.

The entry fee on the fund has been reduced from 0.75 per cent to 0.25 per cent, so on an investment of €10,000, this would result in savings of €50, and you can invest in the fund with as little as €100. Moreover, if you sign up to a regular investment scheme with Rabodirect before the end of the year, you will not have to pay an entry fee.

Play the age card

IF YOU are of a certain age and visit your local DIY store on a certain day to avail of a 10 per cent discount, you should not be shy about looking for similar discounts when buying financial products. While your age may go against you when purchasing products such as life and health insurance, it can work in your favour for other products.

For example, as part of AIB’s “60 Plus” package, you are entitled to pay no commission on the purchase and sale of foreign exchange, while you can also avail of a 20 per cent discount on commission above the minimum €100 charge when buying or selling shares through an AIB branch. Discounts are available with Bank of Irelands “Golden Years” current account.

Shop online

LIKE MOST things, shopping for financial services online can be cheaper than going down the bricks and mortar route.

One website which does exactly as its name suggests, www.cheaperlifeassurance.ie, is a broker for insurance firms such as Hibernian and Friends First. It is currently offering a refund of up to 75 per cent of the cost of your first year’s life assurance premium, once the term is 10 years or more. So, if your annual premium is €600, then the firm will give you a rebate of €450, which will be paid 13 months after the commencement date of the policy if your policy is paid monthly, and after six weeks if it is paid annually.

If you are looking for mortgage protection, www.chill.ie is offering 70 per cent off the cost of your first year’s premium, while www.incomeprotectioncover.ie is giving a refund of €100 on new income protection policies.

AIB offers a 10 per cent discount on car and travel insurance policies purchased on its website, while if you are looking for a private health insurance policy, buying it online with Hibernian Health will save you 10 per cent on the cost of your premium. Similarly at Allianz, if you are taking out a new insurance policy you can get a 10 per cent discount by doing so online.

The best rates for travel insurance are also often found online, so if your travel agent or bank teller is trying to sell you a policy, check what is available on the internet before committing. For example, www.multitrip.com/ie has an annual European policy for one adult, for €21.99, including a discount for private health insurance. If you purchased a similar policy in your local branch of Budget Travel, it would cost you €39.99.

Buy brand names in discount outlets

LIKE BUYING Ralph Lauren in TK Maxx, you can make savings on big name brands by buying financial products through a low-cost outlet.

For example, you can save 5 per cent on every contribution you make to your pension by going through a broker such as www.Labrokers.ie, which offers pensions from providers such as Irish Life, Eagle Star and Hibernian.

If you take out your personnel retirement savings account (PRSA) with Irish Life, in line with standard PRSA costs, you will have to pay 5 per cent on every contribution you make to the fund, in addition to a 1 per cent annual management fee. With www.LA Brokers.ie on the other hand, the only charge is the annual management fee. So, on an annual contribution of €4,800, you could save €240 in the first year alone.

At execution-only broker www.investandsave.ie, you can invest in funds managed by Eagle Star/Zurich Life, and pay annual fund management fees of just 1 per cent.

Investment choices on offer include global, European and Asian Pacific equities, as well as commodities, gold and property funds, with passive or actively managed funds available.

Look for extras

DO YOU like it when you are given a free make-up bag when purchasing skincare products, or a free lasagne dish when you purchase jars of bolognese sauce? If so, then you should look for the same benefit when buying financial products.

For instance, if you buy your insurance with Axa, you will be given an Axa Plus card, which entitles you to discounts on a range of products, as well as special offers on holidays.

Incentives include €250 off your next Axa car insurance renewal if you purchase a new Opel car; 10 per cent off at Atlantic Homecare; 5 per cent off Sunworld Holidays; and a 25 per cent discount at Mad Flowers.

Also on offer are a range of leisure breaks across Ireland, such as a two-night BB break for two people at the five-star Sheraton Fota Island Hotel and Spa for just €299.

At Rabodirect, you can boost your financial prowess by attending a free investor workshop. While the end goal for the institution is to increase its business and promote its products, you can still learn a lot by attending. The next workshop, on sustainable investing, will take place on September 15th in Dublin, to coincide with Rabodirects launch of three new funds by SAM.

If you are looking for a new car insurance policy, consider opting for one which also provides breakdown assistance, as this will save you taking out a separate road protection policy.

At Hibernian for example, all car or van policies cover roadside assistance on any public road in Ireland or the UK, as well as “driveway” breakdown assistance at your home address. Moreover, if the mechanic is unable to fix your vehicle, you will be towed for free anywhere in Ireland or the UK, as well as getting cover for onward travel for you and your passengers if necessary.

If you are looking for a new credit card, Postbank will give you a leisure break, at a choice of hotels around Ireland, of two nights BB, plus one evening meal, for up to two adults and two children at a special rate of €198.

Get a discount on multiple purchases

TO ENTICE you to spend more money, many shops offer discounts on multiple purchases, which can sometimes leave you feeling a bit foolish when you unpack your shopping.

However, as many financial products are essential purchases, availing of such discounts should not leave you with a bad taste in your mouth when you get home.

If you have a healthcare and a car insurance policy with Quinn Direct, then you get a €200 discount on the cost of your home insurance, as well as free travel insurance.

At Axa, if you have a car insurance policy with the firm, you will get a 15 per cent discount on home insurance, while at Hibernian Aviva, you can get 5 per cent off the cost of your home insurance if you have another policy with them.

Buy a house at a knockdown price

WITH PROPERTY developers all over the country at best dealing with liquidity problems, and at worst on the brink of collapse, there are bargains to be had for those brave enough to venture into the property market and lucky enough to get financing. So, disregard the asking prices on new developments and offer what you think the property is worth and you might strike a deal.

Alternatively, consider purchasing a house in a liquidation sale. Home buyers in Cavan recently snapped up houses at the Ardkill Place development where prices were cut by about 50 per cent, with three-beds offered at €100,00, four-bed semis at €130,000 and five-beds for €185,000. It is likely that more similar schemes will come on the market in due course.

In the meantime, other properties are available in individual sales. Insolvency practice Kavanagh Fennell, for example, has a number of properties for sale as part of receiverships. It has just put a newly built four-bed detached house on Dungriffin Road in Howth on the market for €800,000, while it also has other properties for sale, including holiday cottages in Co Wexford from €145,000, and three-bedroom houses in Co Westmeath from €90,000.

Buying a house for €100,000 less than you planned for will save you €61,656 in interest payments over the life-time of a 30-year mortgage on an interest rate of 3.5 per cent.

Get cash back

IF YOU are one of the few first-time home buyers in the market at the moment, in addition to cheaper house prices you can also avail of special offers.

Although competition in the market has fallen off a cliff, as many of the foreign banks have hiked rates to such an extent that they have effectively closed themselves to new business, the two domestic banks are nevertheless offering keen incentives.

Bank of Ireland for example, is currently offering €1,000 cash back if you take out a first-time buyer’s mortgage before the end of September. So that is the couch sorted – although if you redeem your mortgage within the first five years, the bonus is subject to a clawback.

The cost of servicing a first-time buyer mortgage is also on sale, with both AIB and Bank of Ireland, no doubt nudged in this direction by the Government, offering particularly good deals on interest rates.

AIB has a one-year fixed rate of 2.29 per cent for first-time buyers, while over at Bank of Ireland you can get a two-year fixed rate of 2.6 per cent.

Considering that both banks have intimated that increases in their variable rates are on the way, these fixed rates are attractive, although home buyers should note that once the fixed period ends they will be switched onto the variable rate.