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Consumer group Which? calls for end to ‘zombie’ savings accounts

Lucinda Beeman
Written By:
Lucinda Beeman
Posted:
Updated:
05/12/2014

Consumer group Which? has launched a campaign to free savers stuck in poor value ‘zombie’ accounts.

Research by the group found that eight in ten easy access savings accounts and ISAs are ‘zombie’ accounts, closed to new business.

These accounts often – but not always – pay very low rates of interest because they are not trying to attract new customers.

The study found that 39 per cent of ‘zombie’ accounts pay 0.5 per cent interest or less, of which 41 per cent pay 0.1 per cent or less.

Which? estimates savers are losing out on £4.3bn a year by leaving savings in these accounts. 

Despite this, 35 per cent of people surveyed said they had never switched their main savings account because they did not think it would make a difference.

Which? executive director Richard Lloyd said: “Banks and building societies must scrap the savings trap and free savers from poor value accounts.”

The campaign – ‘Scrap the Savings Trap’- calls on banks and building societies to:

– close ‘zombie’ accounts and move customer money into one default easy-access or ISA account at the end of fixed terms.

– make it simpler to switch ISAs and stop limiting transfers into ISAs.

– display interest rates prominently on all statements, annual summaries and online pages.

Lloyd continued: “With many savers never switching because they don’t think it will make a difference, savings providers should do more to help their customers get the best deal. They need to be clear about interest rates, let people know when bonus rates come to an end and make it easier for people to switch ISAs.”