4 swindles to avoid that could save your money

4 annoying swindles by banking sector.

1) ‘No interest' savings accounts

An ‘easy access' savings account should provide just that: easy, no-strings access to your cash when you need it. However, a growing number of so-called easy-access accounts actually have a nasty sting in the tail. If you withdraw any amount in any particular month, then you earn no interest at all on your entire balance for that calendar month.

So, if you withdraw £1 and leave, say, £49,999 in your account, then you earn no interest whatsoever during that month. Therefore, each monthly withdrawal costs a twelfth of your annual interest rate. Hence, three withdrawals (in three different calendar months) per year will reduce your savings rate by a quarter, taking a rate of, say, 6% a year to a more modest 4.5% a year. For the record, I've never opened an account of this kind -- and I suggest you think twice before doing so.

2) 118 numbers (directory enquiries)

In 2003, a whole host of competing 118 services were introduced by telecoms and other firms in a move thought to reduce the BT 192 monopoly. Alas, the outcome was tiresomely predictable: forced to spend millions on advertising, these companies enormously increased the cost of directory enquiries.

NEVER use rip-off 118 services; instead, try finding telephone numbers using google or BT's online Phone Book.

3) Bogus jobs

One remarkable ad claims, "I earn £14,775 per week and so can you". Yeah, right! This amounts to a salary of almost £770,000 a year, the sort of money earned by top sportsmen, financiers and business folk.

In reality, these adverts promise the earth and deliver very little. Some rely on multi-level marketing techniques which appear to offer unlimited potential, but usually fall short. All these ads ask you to send money upfront to learn the ‘secrets' of success -- money which usually disappears into a black hole. If you really want a better-paid job, ask for a pay rise, get some career counselling, or visit well-known recruitment websites.

6) Foreign-currency conversion fees

99% of credit cards charge a handling fee of 2.75% of the value of non-sterling transactions, such as overseas purchases and transactions on foreign websites.

In total, these sneaky ‘currency conversion charges' cost the Brits around £300 million a year. To dodge foreign-currency loading fees, stick to using plastic cards which don't charge extra for non-sterling purchases.