Saving money by choosing a cheap internet connection
As ever on this website, we are not looking at wholesale changes to your lifestyle. Instead, we are focusing on the little things (the small steps) which can make a huge difference over time. Today, let’s look at the how much not changing your expensive broadband to a cheap internet connection could be costing you…
Is there any choice with cheap internet?
Many people may argue that they don’t have much choice well selecting their internet provider. However, competition has greatly increased in the market in the past couple of years. The biggest providers no longer have the monopoly they used to. As proof, a quick search on a price comparison website shows “99 broadband deals” close to my address in a medium sized UK city.
There are now many broadband providers in the UK. However, many of us simply stick with our current provider, unless we are having significant problems. However, not changing our package to a cheaper provider on a regular, or semi-regular, basis could be costing us more than we think.
To ensure we are comparing apples with apples, we shall filter these to look only at 16mb speed and unlimited monthly usage, with the package providing home phone and home broadband.
The most expensive of the options provided £31 per month, with free setup and £10 per month line rental, totaling £492 per year.
The cheapest is £4 per month (with a limited £2 per month introduction period), with free setup and £10 per month line rental, totaling £136 per year. If this is booked through a cash back website, you can also obtain £20 cash back, reducing the annual cost to £116 per year.
Over 25 years, with the benefit of compound bank interest, the difference between the cheap internet and the most expensive deals for the same product amounts to £21,522.
Money Saving Tips
- If you aren’t currently in a “locked-in” period, look into changing your internet provider today.
- For cheap internet, consider combinng your broadband and home phone.
- Sign up through a cash back website, such as quidco.co.uk, for further savings.