The top 10 most useless financial products revealed

Mobile phone insurance is among the 10 most useless financial products on which consumers waste thousands of pounds, according to a Which? report published today. Other pointless purchases include ID fraud cover, payment protection insurance and debt management plans. Researchers for Which? Money Quarterly said the products are "usually useless" and can even "leave you out of pocket or stuck with a poor credit rating". James Daley, editor-in-chief of Which? Money Quarterly, said: "Our research found that there is a bunch of financial products on the market that most people really don't need – but this doesn't stop companies from trying to sell them. "Don't just follow what a salesman says – do your own research, speak to an independent financial adviser if you need expert help and make an informed decision about which financial products are right for you." The money magazine's 10 worst buys (in no specific order) are: 1. Mobile phone insurance Cost: Up to £100 a year. Which? view: "Most people are already covered by their home insurance." 2. Extended warranties Cost: Up to half the cost of the product itself. Which? view: "These are too expensive to ever be worthwhile." 3. Structured products Cost: Can be significant – around 6,000 people with a structured product (a type of investment package backed by banks or their affiliates) were left with nothing when Lehman Brothers collapsed in 2008. Which? view: "Can be confusing, complex and costly – put your money into an Isa." 4. ID fraud cover Cost: About £70 a year. Which? view: "Most losses will be met by your bank." 5. Payment protection insurance Cost: Adding PPI to a £7,500 five-year loan could cost you an additional £2,000-£3,000. Which? view: "Choose income protection and avoid over-priced PPI." 6. Secured loans Cost: You could lose your home if you are unable to repay the loan. Which? view: "Risky – only take out unsecured loans." 7. Store cards Cost: Maintaining an average balance of £1,000 on a store card at 29.9% would cost you nearly £300 in interest over a year. Which? view: "[Store cards] have high interest rates – try a Which? Best Rate credit card instead." 8. Debt management plans Cost: Thousands over the medium- to long-term. Which? view: "Ditch this expensive product and get free debt advice from CCCS , the National Debtline or your local Citizens Advice bureau ." 9. With profits Cost: If you had invested £500 a year in a full-cost with-profits endowment over the past 10 years you could have actually lost money, ending up with as little as £4,892. Which? view: "Can incur high charges, so invest your money in stocks and shares Isas." 10. Packaged accounts Cost: Up to £300 a year – a needless cost if you don't use the extras and benefits of the accounts. Which? view: "Often not worth the money, so replace with a Which? Best Rate current account ."