Shopping for a financial product, be it a mortgage, Isa or credit card, is no different to buying a TV or holiday. To get the best deal, you need to compare what's on offer from different companies.

This does involve a little extra legwork, but you will be thankful in the long run. Here's how.

Make use of comparison websites

You can't turn on TV these days without being confronted by an advertisement promising to save you money on your car insurance or find you a cheaper credit card. Financial comparision websites, such as moneysupermarket.com, uSwitch.co.uk, gocompare.com and confused.com, have become household names, but remember that no single comparison site is perfect. To make sure that you have as complete a picture as possible, always use more than one site.

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It also makes sense to visit the websites of the main product providers because some, such as Direct Line, the insurer, refuse to allow their deals to appear on comparison sites.

The Financial Services Authority (FSA) has its own comparitive tables for annuities, mortgages, savings accounts, Isas and pensions at www.fsa.gov.uk.

You can also rely on the tables of latest offers at Times Online.

Be clear about what you want

It is easy to be seduced by the product that looks the cheapest or appears to offer the best returns. But make sure that it will do what you expect.

This is particularly important when buying a product such as travel insurance or payment protection insurance, where there are lots of terms and conditions that can catch you out. The best price does not necessarily ensure best value.

Take time to read through the small print

It may seem like a chore, but it is your responsibility to make sure that you know what you are buying.

Under FSA rules, providers of investment products, such as unit trusts and stocks-and-shares Isas, should provide you with a key features document. This explains the features, costs and risks.

In the case of mortgages, you receive a key facts document, sometimes called a key facts illustration or KFI, summarising the features and cost of the mortgage.

Watch out for penalties

Restrictions, such as exit penalties if you pay off a loan or mortgage early or quit an investment before the end of its term, can come as a costly surprise.

Even if there are no penalties when you buy a product, check the small print to see if they can be imposed at a later date. Most with-profits investments, for example, reserve the right to impose exit fees - known as market value adjusters or market value reductions - when performance is poor. So do commercial property funds.

Consider your rights after you have signed on the dotted line

Many products allow a cooling-off period after making a purchase. During this period you can cancel free of charge. Annuities, for example, have a 14-day cooling-off period, after which you are locked in for good.

If you are confused, seek help

An authorised independent financial adviser (IFA) will be able to help you to shop around and advise you on the best products for your needs. IFA Promotion can help you to find a suitable adviser.

You have more protection if you buy a product with advice because you will be able to complain to the FSA and may be able to claim compensation if the advice turns out to be unsuitable or if you receive a poor service.

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Five websites

Financial Services Authority

IFA Promotion

Confused.com *

Gocompare.com *

Moneysupermarket.com *

*These are the biggest financial comparison sites but there are plenty more to choose from