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Economic turmoil can be toxic for your finances: with rock-bottom interest rates, yo-yoing stock markets and bail-out banks on the ropes, your accounts, funds and savings can deteriorate swiftly.
Many policies and accounts are already in the doldrums, so you need to squeeze every drop of performance from your financial products to help ride out the turbulence: this is no time to accept second best. To help, we've weeded out some of the most appalling performers to shock you into action.
1. The worst instant-access savings accounts
It's clearly all in the name. Dudley building society pays 0% on £1, rising to a generous 0.1% from £500. Its account name? The Extra Special. How insulting.
Others take you for a ride, too. Base rate may be at 1% but, says Moneyfacts's data analyst, Alliance & Leicester's Instant Access also offers 0% on £1 (and 0.1% from £100), and Laiki Bank Instant Access pays 0%.
The remedy? Switch accounts now. "In comparison, Scarborough building society's Balance Builder Issue 1 pays 3.5%," says Moneyfacts spokeswoman Michelle Slade.
2. The worst variable-rate cash ISAs
These stinkers might be tax-free, but they're in effect rate-free too, thanks to base-rate falls. From £1, Bradford & Bingley's ISA Saver, Halifax's variable rate ISA saver and Abbey's Easy ISA all offer a disgraceful 0.1% up to £3,000 and pay marginally more on tiered sums above this. Tens of thousands of savers are affected and need to move their money ASAP.
The remedy? Switch, but be careful when swapping cash ISAs: don't withdraw your cash, as you'll lose the tax benefit. Always ask your new provider to arrange. Last week NatWest launched an e-ISA account that accepts transfers in from ISAs held with other providers. It pays 3.51% for balances over £10,000, and 3.25% for balances below £10,000.
3. The most expensive overdrafts
Deducing the cheapest current account overdraft is increasingly akin to nailing jelly to a wall: banks have made it very difficult, says Kevin Mountford of comparison site Moneysupermarket.com. "With various new charging structures instead of the old simple APR for comparison, it's a real struggle," he says.
Its research shows the highest authorised (the bank has agreed to this borrowing) overdraft rates stem from part-government-owned RBS: 19.24% with NatWest's Current Plus Account and RBS's interest-paying current account. The story is the same for unauthorised overdrafts at 29.69% and 29.84% respectively. However, A&L's Premier Direct Current Account can fine you £5 a day and Barclays as much as £40 a day.
The remedy? "It depends on what kind of person you are; a heavy spender or occasional breacher of your overdraft," says Mountford. "Don't chase headline rates; take the time to work out which suits your particular circumstances best."
4. The most expensive packaged accounts
Pay £156 a year for a bank account? Have you lost your marbles? NatWest and RBS charge an eye-popping £12.95 a month for inclusive "goodies" such as mobile phone insurance, ID theft protection and commission-free currency. Yet the value of these "perks" is highly debatable: the "value" of ID theft protection is a misnomer, travel cover can be found for a fraction of the price, and how often do you really call on such add-ons?
The remedy? While Mountford believes packaged accounts can be useful for those who don't want the hassle of buying all these policies separately, for most they're a waste of cash and not having them is a speedy way to save a fortune.
5. The most expensive credit cards
If you don't have 0% for balance transfers or purchases, your regular credit card could be stinging you badly. "The most expensive typical APR credit cards are those offering 'rewards' or cashback," says Pete Harrison, credit card specialist at Moneysupermarket.com.
Smile, the online arm of the Co-op, has the highest typical APR at 20.9% - while offering 0.5% cashback. Amex's cashback card charges 18.9%; you'll get the rewards, but if you slip up the cost is high. While the average credit card APR is 16.95%, charity cards will also hit you: the Co-op's card for Barnardo's, says Harrison, levies an 18.9% APR.
The remedy? Cut the card up and pay it off and then, if you need to, consider a new one. You'll need a decent credit score to apply for the best new 0% cards. Virgin Money has one at 0% for 16 months for balance transfers (with a 2.98% fee) and six months on purchases.
6. The most expensive personal loans
Fancy taking out a £7,500 loan over five years? Swallow hard. First Direct charges a wallet-ripping 11.9%, Direct Line 10.9%, Mint 10.9% and Yorkshire Bank/Clydesdale Bank 10.9%.
The remedy? "In comparison, says Moneyfacts's Slade, "yourpersonalloan.co.uk [owned by the Co-op] charges 7.8%. First Direct and yourpersonalloan.co.uk rates are fixed for all customers, so, if accepted, you'll pay this rate." But most lenders offer "typical" rates, meaning the rate you're actually given could be higher than the one advertised.
7. The most expensive store cards
Shop to prop up the economy, the government says, but don't - for your life - use a store card. Selfridges, Carphone Warehouse and H Samuel all levy APRs of 30.9% if you don't pay it off by direct debit (27.8% if you do).
The remedy? "Anyone with a store card balance would be better off either doing a balance transfer to a cheap credit card or personal loan," says Slade. "For example, £1,000 at 30.9% repaying the minimum of 4% would pay an additional £1,120 in interest and it would take 13 years and six months to pay it off."
8. The worst investment funds
Steel yourself: if you chose badly, this will hurt. The overall biggest loser over the past 12 months is JPM's New Europe fund, according to Morningstar ratings agency. If you'd put £1,000 in there a year ago, you'd be left with a paltry £370 after returns plummeted by a staggering 62.8%. It gets worse: if you've had the misfortune to hold the worst-performing fund over the past three years - step forward Legg Mason's Japan fund - your £1,000 would be in tatters, with just £280 left.
"If your fund is in the bottom quarter of performers over the past 12 months, three and five years, it's proved to be an absolute bomb and so it's time to move," says Tim Cockerill at wealth manager Rowan.
The remedy? While individual circumstances play a large part in fund choices, don't just go for the top-performing fund, says Cockerill. "It's about getting the right fund to fit your overall risk attitude and needs - ideally, a balance of funds to benefit from good and bad times."
Funds that put your money into "defensive stocks" such as tobacco companies and utilities are a decent start today. The M&G recovery fund is a current strong performer, Cockerill suggests, alongside the JO Hambro UK Opportunities fund.
Use trustnet.com to compare fund performance.
9. The most disastrous individual shares
Plenty of shares have taken a beating, but some have become pulp. Of the harder-hit companies inside the FTSE-250 12 months ago, New Star is one of the worst to have held shares in, says Ben Yearsley of financial adviser Hargreaves Lansdown. Its share price fell by 98% in the 12 months to the end of January, and bumped along at less than 2p last week. Bank shares have been pounded, too, and some vanished into new forms, such as HBOS into Lloyds TSB and Bradford & Bingley into banking giant Santander.
The remedy? While tobacco companies are typically decent stocks to help "defend" against a downturn - smoking holds up regardless of conditions - today's financial environment has made picking individual stocks a highly-charged business. Research and take as much advice as possible before choosing a share to suit your attitude to risk.
10. The most expensive £100,000 annuity
Maximising your pension is a growing anxiety for savers, with plunging stock markets wiping thousands from retirement savings. With life companies offering different sums for the same annuity, depending on how they value risk, you can miss out if you don't cast your net wide. Last week, according to FSA tables, a £100,000 normal annuity for a 65-year-old non-smoking male gave you a choice of £508 a month with Scottish Widows but £610 with Legal & General, leaving you £1,200 a year better off.
The remedy? Consult the website moneymadeclear.fsa.gov.uk/tools/compare_products to check rates.
• Have we correctly identified the most terrible products or have you fared even worse? Share your views with us by emailing cash@observer.co.uk
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