What is a Defaqto Rating?

With so many financial products on the market, it can be difficult choosing the one that is right for you. Not only is it time consuming reading through all the details and comparing each part of a financial product to another, but you may also struggle to understand the financial jargon and the small print used in the documents and policies.

Defaqto helps people to make better informed decisions by analysing financial products on the market and giving them a Star Rating from 1 to 5. The financial information business has a team of experts who spend 400 hours a day independently collecting and examining information across 200 product areas, and monitoring nearly 41,000 products for any changes. The team analyse polices, terms and conditions and then rate them on a scales of 1 to 5 based on its comprehensiveness. Something that many people don’t have time to do in their daily lives.

The Star Rating helps consumers to understand where a product or proposition is sitting in the market based on the quality and comprehensiveness of the features it offers. A 1 Star Rating indicates a basic product, a 4 or 5 Star Rating indicates that a product or proposition represents one of the highest quality offerings on the market. The experts at Defaqto have worked extensively in the Financial Services industry and use their knowledge of product features and consumer needs to determine the Star Ratings.

As well as comparing financial products, throughout the year, Defaqto experts are continuously researching the market – analysing developments, trends and regulatory changes, conducting consumer research to understand what’s important to us consumers when considering purchasing financial products.

Defaqto Star Ratings are updated and published annually on 1 February each year. Any products launched or changed during the following 12 months are compared against the criteria, and given the appropriate Star Rating. Their Star Ratings can be viewed on Defaqto’s website.

For more information about Defaqto Star Rating, visit www.defaqto.com

Please note: All information within Your Resource Centre is correct at the time of publication, and we make every effort to keep content accurate. However sometimes information may be out of date. You should not rely on this information when making financial decisions as no financial advice has been given. The information reflects the view of the author and not that of Shepherds Friendly Society.

If you’re not sure what to do when making financial decisions then you should consult a financial adviser, who will likely charge for any advice that is given.

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