Paul Lewis
The lists they show are sometimes hijacked by companies that pay to be top of the table.
On a recent savings search I found seven sponsored products heading the table at 3.15% to 1.6%. They filled the screen and only by scrolling down did I find the full results headed by the genuine best buy at 3.3%.
Even the full list may not contain every product. Some firms do not provide information. Others do not join the service. And some are just left out.
There are other distortions that are very hard to spot. Sites get paid every time you click on a link to a bank or insurer. If that leads to a sale then they will get more money.
And because the payments for these 'click-throughs' are kept secret we can never know which firms pay the most or how that affects the way products are displayed.
Even where the list is complete and objective the providers devise cunning plans to get to the top of the table. Savings rates pay a 'bonus' for the first 6 or 12 months to get them up the tables. But once that bonus ends they plummet below the top 20.
Credit cards offer a 'typical' rate but those with a bad credit record are charged double or treble. Car insurers bring the premium down by paring service to the bone. And you only find out if you have to make a claim.
Comparison sites can save you money. But they can save you a lot more if you know the traps that lie in wait.
PS: the Financial Services Authority runs its own non-commercial tables that don't have these problems - www.fsa.gov.uk/tables
Written by Paul Lewis, this article was published on August 6, 2009. Paul is the editor of Saga Magazine's Money News section. Paul's opinions are his own and for general information only. Always seek independent financial advice.