Some supermarket financial products are at best average and at worst distinctly bad value, says Which? today.
We investigated credit cards, loans, savings and insurance products offered by supermarkets and other non-traditional finance providers such as Virgin and the Post Office.
Morrisons credit card was the worst value for borrowing, costing £224 in interest annually – £153 more than the Halifax Flat Rate Online card, which is a Which? Best Buy.
Even the cheapest supermarket credit card, Tesco Bonus, would cost £84 a year more than the Halifax card.
Borrowing £5,000 from Marks & Spencer would cost £348 more over three years than borrowing the same amount from the cheapest provider, Moneyback Bank.
The Post Office claims its travel insurance is ‘great value’, but its annual worldwide policy costs more than twice as much as a Which? Best Buy from Travel Insurance Web.
But there are some good-value products. Sainsbury’s Internet Savings Account pays a healthy 5 per cent interest. Asda, Marks & Spencer and Sainsbury’s all offer decent life insurance deals.
Which? Editor Neil Fowler said: ‘Just because supermarkets offer good value on groceries, don’t assume this applies across the board. You can pay well over the odds for the convenience of picking up a financial product with your weekly shopping.’