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Savings survey underlines customer inertia

Savers not switching to better rates

Savings survey

Only 4 in 10 have changed their main savings account provider

New research on savings from Which? shows that people are sticking with their present providers, rather than seeking out the very best rates currently on the market.

The research reports that of those with a savings account, some 83% have at least two accounts – but that’s not to say people are ensuring that they keep up with the market changes and rate fluctuations which affect their accounts.

Over 60% of people have had their main savings account for more than two years, and in this time the headline rate will probably have dropped off to a less attractive rate. Use the Which? Savings Booster to find out how much interest your savings are earning and whether you could get a better deal by moving your money.

Only 4 in 10 savers have changed their main savings account in the last five years, with another 30% considering it but not actually switching. Those that have switched have predominantly done so to get a better rate (80%).

Sitting tight with savings isn’t the answer

The latest findings come on the back of Which? research at the end of 2010, which indicated that your savings could well be under-performing if you haven’t switched accounts for a while.

Paul Davies, savings analyst at Which?, commented: ‘Our work to expose the Savings Gap last year highlighted how much interest people could be losing out on if they keep their money in poorly-paying savings accounts. Our Savings Booster can help you identify your current rate and show the potential interest you could earn from your savings.

‘The average rate for instant access accounts is still only around 0.8% – and our analysis found that 25% of accounts were paying 0.1% or less and 47% were paying 0.5% or less. This equates to £12 billion in interest that savers are missing out on each year.

‘It is still as important as ever to check out the Best Rate savings accounts to make sure you’re getting a competitive rate.’

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