How to be a savvy mouse and take the cheese from the financial trap...

Our top tips on how to grab a good deal, dodge a dodgy one – and live to tell the tale

Can consumers ever come out on top in their never-ending battle to get a decent deal from big business? Usually the answer is a resounding no. Banks and big companies have the know-how and resources to get the better of their customers, time and time again.

But there are loopholes we can cash in on if we’re clever.

The company may, for instance, offer a genuinely good deal knowing that few people will have the time or inclination to take advantage.

It gets the company good publicity – and the savvy customers who are on the ball get a good deal.

However, other seemingly special deals may really be like cheese in a mouse-trap.

Some astute mice can take the cheese from the trap without snapping it shut – but they have to tread extremely carefully and know exactly what they are doing.

Here’s how you can do it too:

CASHBACK DEALS

Cashback deals are the cheesiest of all the cheese-laden traps.

The most dangerous are mortgages. A chunky 2-3% of your mortgage is offered back in cash as soon as you get the loan by Permanent TSB, Bank of Ireland and EBS.

This is very tempting for young buyers as it amounts to €4,000-€6,000 on a €200,000 home loan.

But guess who has the dearest standard variable rates?

Yes, it’s the same banks with the cashback deals BoI, PTSB and EBS (Ulster Bank is among the dearest if you don’t have or open a current account with it).

And guess how much extra you would pay with BoI, the dearest of those cheesemongers?

€33,000 extra over 20 years compared to the cheapest loan (AIB’s 3.15%).

That’s over five times what the cheesy cashback deal is worth.

Snap! There goes the metal mousetrap slamming down on the back of your neck.

But there is a way to extract the tasty cheese without setting off the trap.

Bank of Ireland has decent short term fixed-rate loans.

It has just reduced its two-year fixed rates to 2.9% – a tempting offer when combined with the 2% cashback deal. (You only get 3% if you stay for five years).

This is the third cheapest on the market next to KBC (2.6%) and Ulster Bank (2.3%), both of which have some strings attached (see table).

So why not grab a two-year fixedrate deal with BoI and then, when the period is up, either fix again or move to a cheaper lender?

Even Ulster Bank’s 2.3% deal would cost you only €1,400 less than BoI’s over two years, so you’d come out handsomely ahead with BoI’s cashback deal.

There are serious disadvantages to fixed-rate loans, namely that you have to pay a penalty if you move home within the fixed-rate period.

But that downside is negligible for a two-year fixed loan unless you plan to move within two years of buying, which is highly unlikely to happen. VOUCHERS Vouchers save you money on lots of stuff. The loophole is that they are promotional tools that most people don’t bother to use. But if you use them, you win, so there’s nothing to lose. If you make the effort and download a voucher code, you can save yourself oodles of cash in a range of Irish stores, including Argos. Essential for big purchases. LOYALTY CARDS Likewise, most companies have loyalty cards – Boots, SuperValu, Tesco to name a few. You have to save up lots of points to get any kind of significant freebie. But it costs nothing and it’s very simple to sign up, so again you’ve nothing to lose. HOME DELIVERY When you consider the cost of petrol and your time that could be spent doing other things, home delivery seems a hassle-free bargain. Stores want to boost sales and queues at the till, so they subsidise online shoppers. Tesco charges €10 for a month of deliveries, which is probably worth it for the saving in fuel and time.

An online shop is also a good way to target special offers, which can all be viewed with a simple click.

Another loophole is that Tesco’s home delivery is free for the over65s.

Note: A new app – Buymie – charges from €3.99 plus a 10-15% mark-up to deliver Lidl groceries to your door.

HAGGLING

Haggling is not just for shopping in exotic overseas markets. You may also be able to haggle with a surprising degree of success in your regular local shops, including Tesco. It’s a little known loophole in the sales process!

In one poll, there was a 60% success rate in big-name stores including TK Maxx, Debenhams, M&S and Currys PC World. Among small independent shops, the success rate was 97%.

The study was UK-based but most of the shops operate in Ireland too.

In any case, you’ve got nothing to lose – especially at the end of a sale when shops want to clear their stock.

You can even haggle online! Don’t dismiss the little live chat option – it gives you an opening to ask for a better price, or special deal, depending on the store.

Nike, Dyson and Dell have all reportedly offered discounts to persistent customers after a bit of haggling.

Less forthcoming reportedly were Apple, Amazon and Mac cosmetics.

HEALTH COVER

There are plenty of loopholes in health insurance that we cover here all the time – for instance, special offers for children.

You don’t have to have your children on the same plan as yourself, so get yourself and your spouse onto the pricey plan with the extras for GP visits and optical, physio and dental care that your children probably won’t need.

Then put them on the bestvalue plans.

Laya and VHI currently have special offers for children – remember that all the family don’t have to be with the same insurer. VHI currently has a half-price offer for children on all of its One Plans until February 28.

But don’t assume this plan is also best for adults.

Grown-ups would be much better off on VHI’s corporate plans – such as the PMI 4313 – which cover routine medical expenses and much more.

If you have lots of children, Laya’s children’s offer might be better for you in terms of cost.

It began a ‘Free Kids Offer’ across three plans in December.

All second and subsequent children are free on the following policies: Essential Connect Family (€250.53 for child 1), Essential Health 300 (€234.60 for child 1) and Flex 125 Explore (€343.36 for child 1).

These offers apply to all new and renewing customers.