A small energy supplier has launched a new tariff that pays interest when your account is in credit.

Eversmart energy – an independent energy supplier based in Manchester – has recently launched the “Family Saver Club” tariff. At the time of writing it’s the cheapest 1 year fixed deal on the market. There is a small catch though – in order to qualify you have to pay for a whole year of energy upfront. For a typical dual fuel user this would cost around £1,000. If you do it, they’ll also pay interest on your credit balance at a rate of 1% per month. The interest is calculated and added every month, after your energy bill has been deducted from the balance. We’re told that you can withdraw the interest every six months.

Is it worth it?

If you have the money to spare, it could be a quick & easy way to make a little extra cash. Be aware that if you end up using more energy than expected, you could still end up with a bill to pay at the end of the 12 months. If you use less than you paid for, you will be refunded.

Eversmart have said that they’ll carry out payment reviews after six months.

Should I trust a small supplier?

Eversmart are one of many smaller ‘independent’ energy companies, who may not be as famous as the ‘big six’ suppliers but are often far cheaper.

Ofgem do have safety net rules in place, so if an energy company goes bust (which is rare) they’ll move you over to a new supplier without disruption.

What do Eversmart have to say?

Barney Cook, CEO of Eversmart, said: “We know this time of year can be expensive for families up and down the country, so hopefully our Family Saver Club is a way to help them plan finances better, get some money back on the energy they use, and ease the stress that can come with contacting their energy supplier.”

How do I join?

Head on over to the supplier’s website. Enter your details to get a quote, then select the “pay yearly” option.

Categories: Personal Finance

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