New research from online bank First Direct shows that almost four in 10 savers don’t know the interest rate on their savings account.
4 in 10Proportion of savers who don’t know their interest rate
Not only do 36.9% of savers not know what interest rate they’re earning on their savings account, but a third (34%) rarely or never check their balance, according to the new research.
When Which? investigated low savings rates last year, we calculated that savers are missing out on £12bn of interest each year, with almost half of UK savings accounts paying 0.5% or less and one in four paying 0.1% or less.
Which? principal researcher Martyn Saville says: ‘With interest rates so low, it’s surprising how many people still aren’t actively tracking their savings. The best instant-access savings accounts pay over 3%, while many pay 0.1% or less.
‘The irony is that First Direct pays 8% for the first 12 months on its Regular Saver Account, but as little as 0.05% on its Saver Account. That’s just 50p interest on a balance of £1,000. If you’ve got money in that account, take the bank’s advice and switch your balance elsewhere.’
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