Two weeks ago, Irish Country Living looked at how you could earn up to €2,000 by reviewing the tax you could claim. This week, it’s all about switching and saving and we’ve worked with independent price comparison site bonkers.ie to see how you could save nearly €5,000 on your family bills, and for some bills making the switch just requires a phonecall. Daragh Cassidy, head of communications at bonkers.ie, says: “The start of the year can be a bit of a struggle trying to make ends meet. Yet every year people make things harder for themselves by paying more than they need to for their household bills. Which is why we’re encouraging everyone to save big this year by switching.”

So let’s look at your household outgoings, which include your mortgage, energy supplier, broadband and TV, bank account, health insurance and mortgage insurance.

1. Mortgage provider

Saving: €2,928

Switching mortgage providers can be one of the more cumbersome jobs on this list but it is also the one where you could potentially reap the most amount of savings in one clean swoop. Let’s take the Kelly family in Limerick, for example. Their remaining mortgage is €250,000 and they are currently paying a 4.5% standard variable rate with Bank of Ireland.

As they have 20% equity in their home, they can now switch to Ulster Bank, who have a 2.6% fixed rate over four years, which is the cheapest rate in the market over that time period. This will see them making a saving of €244 a month, which over one year is €2,928.

Also due to the Central Bank’s new Consumer Protection Code, switching mortgages and bank accounts has now become more straightforward. There is also more information available to help consumers make the right decision for what is the biggest outgoing for most families.

For example, lenders are now required to let customers know at least 60 days in advance that they’re about to come off a fixed interest rate and to provide details of the new rate that will apply from the expiry date. Lenders will also have to provide mortgage holders with information on other possible options that may be available to them.

For consumers on a variable-rate mortgage (other than a tracker rate), lenders are now required to notify mortgage holders every year as to whether they could get a cheaper interest rate as a result of a change in their loan-to-value ratio.

2. Bank account

Saving: €150

Similar to switching mortgage accounts, levels of those who switch bank accounts remain chronically low at below 1%. However, if you’re unhappy with your current bank, switching could make a difference. For example, if you are an AIB customer who makes one chip and PIN and one contactless transaction a day, six ATM cash withdrawals a month, and has a total of 10 direct debits, standing orders and/or lodgements presented on the account a month, you could switch to the Permanent TSB Explore Account and save just over €150 a year.

3. Energy supplier

Saving: €538

Switching your energy provider could save you hundreds a year. Even better, it doesn’t matter what provider you are with. Just switching from one to the other every year will see you make savings. That’s because energy providers put more emphasis on getting new customers on board rather than offering savings to their current customers. So time for you to be a smart consumer and beat the system.

For example, if you are now an Energia customer who’s on standard rates you could switch to Bord Gáis for your gas and electricity and save €538 a year. After one year, your introductory discount will expire so just switch back again next year to another supplier and keep the savings.

This is based on the Kelly family who consume 4,200 kWh electricity and 11,000 kWh gas per year. They have a three-bedroom house but if in a home with more than three bedrooms or which is poorly insulated, the savings could be even more substantial. Also, this is one of the easiest switches to make and can be done over the phone.

4. Broadband and TV

Saving: €524

Again, the same theory applies to broadband and TV. Very little emphasis is put on retaining customers, more on attracting new customers and if you switch from one provider to the other on a yearly basis, you can avail of introductory savings.

For example, if you have a Sky entry level triple play bundle with home phone, broadband and TV, your bill is €92 a month at standard rates. If you switch to eir, you’ll be paying their introductory offer of €44.98, a difference of €47 a month.

You will have to pay a €39.99 set-up fee but even taking that into consideration, over the course of a year, you will save €524.

After that introductory year though, your rates will increase to €74.98 a month. Switch back to Sky and you’ll be on their introductory rate of €50 a month. Again, a set-up fee of €25 applies but it soon pays for itself when you consider you’ll be saving nearly €25 a month.

Although not all readers in rural areas may have these services available to them, it’s still worth looking at switching options in your locality.

5. Health insurance

Saving: €640

Daragh in bonkers.ie says that although many consumers are great at switching their car insurance, for some reason this doesn’t extend to other forms of insurance. “As a result, it’s unsurprising that recent research has found that two out of every three health insurance members are potentially on the wrong health plan. Older plans in particular are often outdated in terms of what they cover and very poor value. As a result, the potential savings for shopping around can be huge.”

Daragh uses the example of Mary Kelly who is a Laya customer. She is afraid to change policies in case she loses her benefits. “Even staying with the same insurance provider, Mary could switch from their Company Care Excess with a premium of €1,890 to Simply Connect Plus for €1,250, and still keep many of her benefits.”

6. Mortgage insurance

Saving: €92

When people are buying their home, there can be a lot going on, between dealing with banks, estate agents and planning renovations for their new home. Mortgage insurance can fall down that list and often people are too distracted to get the best price. Switching isn’t as cumbersome as you would think and the Kelly family for example, could save €92 a year by switching from New Ireland to Royal London. Their current policy is for cover of €250,000 over 20 years. Both are non-smoking and switching brings their premium down from €20 a month to €12.27.

Did you know?

Ex-smokers could save money

Ex-smokers are also being advised to review their life insurance cover. As Daragh explains: “If you’re an ex-smoker who’s been off cigarettes for over 12 months, you can apply for new cover either with your current provider or a new provider on non-smoker rates. These rates are often half the price a smoker is charged. So if you gave up smoking last year as part of your New Year’s resolutions, now’s a good time to review your cover.”

For more information and to switch your services, log onto www.bonkers.ie