Business News
Savers could be missing out on ‘millions of pounds of interest’
New research has suggested that British savers are missing out on millions of pounds of extra income by keeping their money in low interest bank accounts.
A recent study by consumer group, Which? has found that account holders across the UK would earn a collective £12 billion extra in interest every year if they switched to accounts with higher interest rates.
Equating to around £322 extra for every saver currently holding an easy access, notice saving account or cash ISA, Which? claims that almost half the 1,200 savings accounts available to consumers in the UK paid 0.5% or less.
Which? Chief Executive, Peter Vicary-Smith explained: “Banks are depriving British savers of £12bn a year by keeping us in the dark about the pitiful interest paid on hundreds of savings accounts.”
“Whilst we pressure the banks to be more upfront about their rates, people can take action and potentially add hundreds of pounds a year to their savings by moving their money to a better account.”
However, the British Banker’s Association, BBA, has hit back at the study outlining that information on interest rates is readily available online and consumer are free to shop around as they choose:
“Banks provide a variety of savings products to suit people's needs and have no interest in keeping customers in the dark about the products they use.
“Information is readily available in branches, online and from a variety of other sources, including newspaper best buy tables and comparison websites and customers will also be automatically notified if there are changes resulting in materially lower rates so they can switch their funds.”
