1)  Check for Monthly Fees
Monthly fees often accompany discounted rate programs.  To determine whether a plan with a monthly fee makes sense for you, divide the fee by the number of long distance minutes you use in a typical month.  If you are a high–volume user (more than 600 minutes per month) a monthly fee may be well worth it to get a lower rate.  However, monthly fees can add unnecessary costs for customers who make few long distance calls.  And, there are long distance plans with no monthly fees and competitive rates.  These may be the best bet, especially for low-volume users.

2)  Compare the Real Cost-Per-Minute
Long distance providers advertise rates as low as 5 cents per minute, but your real cost could be much higher if these advertised rates apply only to state-to-state calls.  Under some rate plans, in-state and local toll calls can cost as much as 10 to 20 cents per minute. Look at the rates for all types of calls before signing on to a plan with a low state-to-state rate.  Otherwise, you may pay a much higher average rate for long-distance service than the advertised price.

3)  Shop for Local Toll Call Rates
Before 1998, toll calls within your area code, or local toll calls, were provided exclusively by the local telephone company.  Even though you can now shop for local toll service, most customers have remained with their local telephone company for these calls, at a cost of 10 to 20 cents per minute.  Look at your current rate for local toll calls and compare with the rates offered by long distance service providers.  Depending on the number of toll calls you make within your area code, you could save a lot.  And, if you decide to switch, make it clear that you want to switch your “local toll call service.”  Changing your local toll provider could save you money, and will not affect your local service.

4)  Smaller Billing Increments Can Save You Money
Most long distance companies bill in increments of one minute, so consumers pay for a full minute of service for every fraction of a minute they use.   Over the course of a month, depending on your usage, this could add several dollars to your bill.   Some companies bill in increments of as little as six seconds, so you pay only for the time you talk.  This difference can save customers an average of 15 to 18 percent or more on long distance service.

If you find a plan that offers a rate per “calling unit” or a set number of “calling units” for a flat fee, be sure to ask how many seconds or minutes are in a calling unit.  Many times  these calling units are only a fraction of a minute.

5)  Time of Day Makes a Difference
When limitations on times of day are attached to low rates they can be less of a bargain.  Many long distance companies offer attractive low rates, but limit these to evening hours (often after 8:00 p.m.) or weekends.   While these low rates can save you money on calls made during these time periods, your savings may be offset by higher rates charged for calls at other times of the day.  In addition, the low rate may be for state-to-state calls only.  Calling plans that offer low rates all the time may save you money in the long run..

6)  Toll Free Numbers
More and more families today are taking advantage of the convenience of toll free numbers – such as 800, 888, 877 and 866 numbers.  Having a toll free number for your home can eliminate the need for collect calls and travel cards, which can cost more to use.  They are especially popular with college students, aging family members or frequent travelers.  But, it pays to shop around for the best rate.  Many companies charge more than their long distance rates – up to 30 cents per minute, more than three times the standard market rate for long distance service.  There are some, however, that offer competitive rates, so compare prices before signing up for a service.

7)  Travel Calling Cards
Travel calling cards allow you to make long distance calls when you’re away from home, and charge them to your regular long distance account.  While this is a convenient service, it can be costly – as much as 69 cents per minute.  Look for a travel card with a low per-minute rate and no additional fees.  That way your travel card can be used economically to stay in touch when you’re away, not just for emergencies.

9)  International Rates
You can expect to pay higher rates for international calls, but a little digging for bargains can save you a lot.  Calls to some countries, especially those with developed communications systems, can be quite reasonable if you choose the right provider.  When you sign up for long distance service, ask about rates for any country you might call regularly.  If the country you plan to call has a developed system, you can expect to pay between 10 and 20 cents per minute, even to countries as far away as Australia and China. 

10)  Ask About Switching Fees
Local phone companies usually charge $10 to switch your account to a new long distance provider.  Before signing up, ask if the provider will reimburse you for this fee, and, if so,  find out how to get this credit.  Most reputable companies will pay your switching fee, and pay to switch you back, if you’re not satisfied. 

Service Can Be as Important as Price
Before choosing a provider, make a few calls and ask questions.  Find out how long it takes to reach a representative, check out the quality of automated service to avoid surprises down the road.  This research will pay off if you ever have a question or problem with your account.