Consumers would be wise to lessen their dependence on banks as they push through a raft of mortgage, credit card and loan rate rises. This is despite the State taking massive stakes in most of the domestic banks.

Loans
Bank of Ireland has already hiked it personal loan, student loan and overdraft rates and the rest of the banks will follow suit. Get a fixed rate loan, which cannot increase.
Alternatively, try your local credit union which tends to be cheaper than the banks. Another option is to borrow from family or friends, but give them something as security (like a watch or jewellery) until the loan is repaid.

Mortgages
AIB has increased its fixed-mortgage rates, and others will now do the same. AIB was the cheapest so the pressure is off the other lenders now that AIB has moved.
Despite the hike, AIB fixed rates still make sense if you are on a standard variable rate and not a tracker. If you are with another lender and can get a rate of less than 4pc for three years take it.
You have, at most, a few days before other lenders mimic AIB and hike fixed rates.

Savings
Around half a million adults are saving every month, with regular savers typically younger people who do not own their own home. Permanent TSB says it has 53,000 monthly savers saving an average of €200. EBS, Bank of Ireland and Permanent TSB pay 4pc on amounts up to €1,000 a month.
The best demand deposit rate is with Nationwide UK – 3.3%.
The best one year fixed rate is with Anglo Irish Bank at 3.5%.
An Post has the best tax-free rate at 3.53% a year, over three years.
But these rates are unlikely to last as banks will cut deposit rates in the coming months.
Do not let a balance build up in your current account.

Credit cards
Stop using your card if you continually find yourself running up large balances that you struggle to pay off. Use your debit card (Laser or Visa) instead and virtual cards like 3V for online purchases.
Another option is to sign up for a credit card elimination deal with a credit union. With this if you can prove you have stopped using credit cards you will get around a third of the amount outstanding on the card from the credit union in a loan. After three months, if it can be established you have stopped using the card, you will get a loan for the rest of the outstanding balance.

Bank products
Only buy services and products you need from your bank. Do not be persuaded to buy something you do not need. Bankers are going to be under huge pressure to sell a range of products – insurance, investments and pensions – in the coming year. Be careful. Think twice about agreeing to a free “financial check-up”.

Economiser.ie
Check out National Consumer Agency’s www.economiser .ie website which shows householders how to save money on groceries, phone bills, energy costs and TV and broadband charges.