Almost nine in 10 (87%) savings accounts that were available six years ago are now paying interest of 0.5% or less, while almost two-thirds (62%) are paying 0.1% or less – just £1 a year for every £1,000 saved, shows new research by Which? Money.
Which? chief executive, Peter Vicary-Smith, says: ‘All too often, banks and building societies lure in savers with attractive rates of interest, then reward their loyalty by quietly slashing rates to a paltry level later on. It’s a scandal that banks seem to reserve the most pitiful returns for their most loyal customers.
‘Anyone who needs a money makeover for 2011 can make a quick and easy start by using our savings booster to find an account that could pay them hundreds of pounds more each year.’
Many consumers haven’t switched savings account
Which? Money researchers discovered that more than a third of savers (35%) still have money in a savings account they opened six years ago or more, despite the pitiful rates of interest.
And nearly four in ten savers (38%) said they wouldn’t switch savings account because they think all savings interest rates are pretty much the same. In fact, savers could on average earn an extra £322 a year in interest if they moved their money to Best Rate versions of their accounts. You could currently get 2.9% from a Best Rate instant-access savings account.
Which? Savings Rate Booster
Last November Which? revealed that British savers are missing out on £12 billion a year because banks kept us in the dark about poor interest rates. To help savers and give them a quick and easy way to find out what interest their account is paying, Which? has created a free Savings Rate Booster. This is the only place where savers can quickly and easily find out what interest their account is paying, compare it with the best on the market and start moving their money.
To find out how much extra interest you could be earning on your savings, try out the Which? Savings Rate Booster now.
Join the debate on Which? Conversation
Are you getting a paltry interest rate on your savings? Does it surprise you that loyalty to your bank doesn’t pay? Tell us your views on Which? Conversation:
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