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Four in 10 don’t know their savings interest rate

A third rarely or never check savings balances

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.’

Which? Best Rate savings accounts

To find out which bank or building society offers the highest rates on your savings, read Which? Best rate savings account reviews.

If you haven’t used up your tax-free cash Isa allowance this year, or if you want to earn a higher interest rate on previous years’ Isas, check out Which? Best Rate cash Isa reviews.

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