How to get a cheaper mobile phone contract – Telegraph.co.uk
For only a little more each month, EE will offer an identical contract but with 5GB of data – this will cost Â£34.24 a month over two years, again taking into account the up front charge.
Weigh this up against buying the phone upfront and getting a sim-only deal alongside it. This willÂ often work out far cheaper. When you take out a contract you’reÂ effectively loaning the cost of the handset and you can be charged as much as 30pc APR.
The iPhone 8 costs Â£699 upfront while the Samsung Galaxy S8 will set you back Â£689.Â The cheapest sim-only contract thrown up by Billmonitor, the comparison site,Â is with Tesco Mobile and costs Â£7.50 a month, and comes with just 500 minutes, 5000 texts and 1GB of data.
This makes the total cost of an iPhone 8 with O2’s contract Â£966 over two years, while buying the handset and going sim-only will only cost Â£879. A saving of almost Â£100.
In contrast, the 24-month contract with EE for the Samsung actually represents a saving on buying the handset upfront, costing Â£701.76 over two years, compared to Â£869 using the sim-only method.
Going with a contract? Log the end date
Todayâs bombshell news, uncovered by Citizens Advice, revealed many continue paying for a handset long after theyâve already cleared the cost.