You are here: Home - Saving & Banking - News -

Brits could save £7.7bn a year by checking their savings rate

Written by:

Saving account holders could earn an extra £7.7bn a year by checking the interest rate paid on their savings (AER) and then switching to a better deal, according to Moneysupermarket.

The comparison site is challenging all savers in the UK to call their banks this week and check their savings rate.

Millions of savers have money languishing in accounts paying dismal rates, with some discontinued accounts (accounts no longer offered to new customers but kept running for existing ones) paying as little as 0.25% AER.

A five minute phone call could potentially boost their savings interest by £200 per year if they end up moving their money to a higher paying account (perhaps with another provider) – it could be the best paid five minute call they’ll ever make.

Research by Moneysupermarket has found that 31% of all savers have never even checked their savings rate and could be earning practically nothing on their hard earned cash. Nearly half of all savers have never changed their saving account. Of these, 48% have held their account for over a year so the rate will probably be significantly lower than when they opened their account – something they may not be aware of.

Kevin Mountford, head of savings at Moneysupermarket, said: “Many people stick with the same bank for a lifetime, and our findings show a third of savers opened their account over 10 years ago. But when it comes to savings this could be a big mistake.

“We are calling on everybody who is at all unsure about the return they are getting on their savings to contact their bank this week and check their savings rate directly. When times are tough, a simple action like checking the interest rate on your savings can pay dividends.”

Half of Brits who have checked the interest rate since taking out their account have been disappointed to see it has gone down. However, even this has not been enough to shake them out of their apathy – with just a quarter having switched savings accounts to get a better interest rate in the last year.

Mountford continued: “The banks seem reluctant to make it easy for customers to know when the rate has dropped. The changes may be there in the small print, but as a quarter of savers only skim read the terms and conditions from their bank, and 15% read nothing at all, most will miss these all important announcements – something the banks no doubt rely on.

“Consumers need to take responsibility for checking rates either by reading statements clearly, or using their initiative to call their providers. For those with money in poor-paying accounts a quick phone call could be all it takes to find out your rate, and then visit Moneysupermarket to see how it compares to the best deals currently available. You should then move your savings and make your money work much harder for you.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Personal goals cause Brits to start saving

By Imogen Crouch-Hyde There has been a significant shift in Britons’ saving behaviour as taking that first step onto the property...