Football finance deals shown red card - Money - News - Moneyfacts

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Football finance deals shown red card

Football finance deals shown red card

Category: Money

Updated: 08/08/2016
First Published: 08/08/2016

Football fans be warned; the savings accounts and credit cards on offer bearing your club's crest may not be the best choice available.

With the new football season about to get into full swing, our latest research reveals that avid fans could find themselves out of pocket unless they also check out non-football related accounts and cards available to them.

Many loyal supporters like to give their club a cash boost by opening a football savings account endorsed by their team. On the surface, additional perks such as free tickets and discounts in the club shop seem to make these accounts an attractive option.

Unfortunately, however, the interest rates on these accounts are often very low in comparison to the standard accounts on offer - for example, the best football-endorsed easy access account available today pays 1.00%, a rate which is dwarfed by the 1.45% on offer from the market-leading easy access account in the wider market.

"Since the majority of these accounts offer a contribution to their local team, many supporters are happy to forego a high return," said Charlotte Nelson, finance expert at Moneyfacts. "However, with the average contribution amount standing at just 0.90%, many could be disappointed.

"A better option could be to open a standard account that pays a decent return and then to donate a proportion of the interest directly to the club. That way the saver will benefit from a competitive rate and the club will profit from a much larger contribution."

In respect of credit cards, a logo-emblazoned flexible friend may also come at a cost, with Charlotte revealing that more often than not, more cost-effective deals can be found.

As an example, if £2,000 was borrowed on a card charging 18.9% APR, it would take two years to repay and cost £381 in interest if a repayment of £100 is made each month. However, if the borrower opted for the lowest rate in the market of 5.9% and made the same repayments, they would save £273 in interest and shave two months off the repayment time.

In addition, if they used the best interest-free credit card and paid back the debt before the offer ended, then they could avoid accruing interest charges altogether.

"The most eye-catching features of these cards are the reward scheme and the grand prizes," she added. "Borrowers who are able to pay off their balance in full each month and use the card as their main credit card will be the most to benefit. However, customers would have to spend a significant sum of money to benefit from these reward schemes and could potentially be better off opting for a cashback card instead."

To get you started, why not have a look at our savings account and credit card charts to see how they compare to the deals offered on behalf of your club.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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