INTEREST rates are on the way up but stiff competition among lenders is forcing them to drop the cost of a personal loan.

The big two banks have copycat credit offers with better rates for bigger borrowers. AIB's top rate is 6.99% for loans over 25,000. Bank of Ireland has edged ahead slightly with 6.9% for loans over 20,000, although the repayments must be stretched over at least five years to qualify.

For smaller loans, the big two banks will charge you interest of 10% or more. So check out Tesco Personal Finance or National Irish Bank instead. They charge a flat rate of 7.5% interest on all amounts from 2,500 to 30,000, although Tesco is offering this rate only until the end of July.

The big thing to watch for is whether the rate you are quoted is fixed for the term of the loan or variable, in which case you can expect the repayments to rise along with interest rates over the coming months.

Rates are fixed at Bank of Ireland, Tesco and NIB, while AIB's rates are variable and therefore liable to change.

Anne Donoghue, director of Tesco Personal Finance, said it makes sense to lock into a fixed rate now before interest rates go up again.

"Your repayments are guaranteed never to change. The rate you see is the rate you get and there are no set-up fees and no exit penalties, " she said.

SAVE

THE Consumers' Association has done the homework for thousands of holiday-makers heading for the sun this summer by identifying the best value travel insurance.

The latest edition of its magazine, Consumer Choice, reports that Quoteline is cheapest for a two-week trip in Europe at 15 per person. But because cover is limited, the Consumers' Association gives the thumbs-up instead to Ebookers. ie at 16, Justcover at 18.50 or Getcover. com at 22.50.

If you are heading for America, expect to pay more for travel insurance because of the huge cost of any sort of medical treatment on the other side of the Atlantic. Ryanair's no-frills policy works out cheapest at 30 per person for two weeks. But the Consumers' Association advises that you get something more comprehensive such as Justcover's US policy at 42 for two weeks or Ebookers. ie at 39.

For people who take several foreign trips a year, an annual policy gives the best value. The VHI has the best prices at 49 per person, although you must also have VHI health insurance to qualify. The savings are possible because you are not paying extra to buy cover for medical expenses that would already be covered under your VHI health insurance.

ONE TO WATCH

THERE are probably as many stock-picking strategies as there are companies listed on world stock markets. And now a team of academics at Princeton University in the US has come up with a novel way of spotting winners among new companies coming to the market for the first time.

As unlikely as it may sound, they believe investors are more likely to buy into stock market debutantes that have easily pronounced names.

According to Adam Alter and Danny Oppenheim, people take mental shortcuts even when it comes to investing money.

In particular when we have little information to go on, a simple name can mean a lot. Oppenheimer added that people do not always act rationally. Consequently they say economists are probably wasting their time predicting movements because markets are ultimately driven by people.

Their findings make interesting reading for Ireland's national airline, still awaiting clearance for its long-delayed flotation later this year. Aer Lingus is a household name at home but may prove to be something of a tongue twister with investors from farther afield.