What is a no deposit electricity plan?
Signing up to a no deposit electricity deal means that you will not have to pay an upfront deposit for your energy plan. Often, electricity providers will charge you a deposit, which is fully refundable (with interest) once your contract ends, if you have a poor credit rating.
If you have a good credit rating, then you should be fine, you usually will be able to change energy providers without having to pay the deposit.
Most no deposit energy plans are prepaid, which mean that you pay money into your account, and then top it up when it is running low, rather than being charged monthly for the amount that you use.
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What are the benefits of prepaid no deposit electricity?
Although deposits are fully refundable, if you can’t really afford the deposit straight away, a no deposit electricity plan can help you out.
No deposit electricity plans also give you more flexibility over your deal. For example, on top of being able to get energy without having to pay a deposit, many companies allow you to buy energy without a social security number, or any form of ID.
Another benefit, if you are on a prepaid plan, is that it allows you to control your spending more. Being aware of how much money is in your account can help you be more cautious with the ways that you use your electricity and help you save in the long run.
However, it is worth noting that although you might spend less overall this way, the actual electricity tends to be more expensive. If your household already runs its electricity in an efficient way, it may be best to look at more conventional electricity plans.
What are the best no deposit electricity companies?
There are a number of options for no deposit electricity, and choosing which one is the best will depend on what you are looking for with your package. User our free electricity comparison tool to check out the suppliers available in your area. Just enter your zip code to get started.