Traps for the unwary buyer

Savvy investors take advice, shop around and get the best financial products for their needs and tolerance for risk.

Websites such as Consumer Online, Fundsource, Cardwatch and Depositrates (see links below) will help you find the best buys, or your financial planner or insurance adviser should have access to comparison tools and sift the wheat from the chaff.

But, says Insurance Ombudsman Karen Stephens, don't just buy something because it's a "best buy". Make sure you know what you're buying and the return you expect to get from it.

So here are five products which, if not approached with caution, could trip you up.

Covers:
Hire purchase
Lifetime mortgages
Capital guaranteed stock market investments
Shabby bank accounts
Expensive extended warranties


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