Useless financial products
A Which? Money report has named the top ten worst financial products, on which consumers waste their money each year.
Here are the ten most useless financial products, as named by Which? Money.
1. Mobile phone insurance
2. Extended warranties
3. Structured products
4. ID fraud cover
5. Payment protection insurance
6. Secured loans
7. Store cards
8. Debt management plans
9. With profits
10. Packaged accounts
These are ten products to consider very carefully before you purchase, although there are rare occasions when some of them might be suitable.
We are certainly very wary of structured investment products, which come with reams of small print and uncertain levels of financial guarantees.
It would also be very unusual for us to recommend a With Profits investment, as these tend to represent a very opaque investment solution with little control for the investor over returns and risk.
Financial institutions will continue trying to sell these products, often because they are incredibly profitable for those that sell them. This list of the ten most useless financial products makes a great starting point for questioning why you need any of the above and why it is suitable for you.