Supermarkets Do Battle Over Loans And Savings Products
For many years now, there have always been strong levels of competition between the major supermarkets in the UK, with a constant price war over just who is able to sell the cheapest tin of baked beans!
Recently, supermarkets have even taken to advertising their competitor’s price next to their own, just to show how much cheaper they are than “the others”.
As supermarkets have expanded they have also diversified into other areas of business, such as insurance and financial products such as savings accounts, personal loans and credit cards and with the reputation of supermarkets going before them, it is therefore little surprise that the competition is increasing to provide cheap loans and the best savings rates.
Both Sainsbury’s and Tesco are now offering rates on savings accounts which are able to beat most of the high street providers and can even compete with the best internet based accounts. And the same is true when it comes to borrowing money.
Supermarkets can now offer realistically cheap loans, with some of the most competitive rates for an unsecured loan, or a credit card, anywhere in the market place, although it has to be said that for someone who may be unsure of their personal loan or credit card requirements, it is still worth taking some time and talking to an independent financial adviser before simply jumping at the best cheap loan rate.
Michelle Slade of Moneyfacts.co.uk supported the competition between supermarkets. She said “Many consumers are disillusioned with traditional banks and instead are looking for an alternative provider for their finances. The combination of competitive deals and a strong brand that consumers already know and trust is a real winner for the supermarkets.”
