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

Apathetic savers missing out on the best rates

Written by: Emma Lunn
Only 13 per cent of savings accounts were switched in the past three years.

Consumers aren’t receiving the best deals and rates for their cash savings because they stay with the same account, according to the Current Account Switch Service.

The switching service commissioned a white paper on the savings market in order to understand consumers’ needs. It found that many consumers are reluctant to swap to different products, with only about one in eight (13 per cent) of savings accounts switched to a new provider or product in the past three years.

The research found the introduction of a savings switch service, based on a similar model to the Current Account Switch Service, could benefit both financially savvy consumers and those with simpler requirements.

The study found that 56 per cent of under-45s who have a savings account said a switch service was “very appealing”, rising up to 60 per cent among regular savers and those with multiple saving products.

The most common reason people gave for not switching was inertia, with consumers aware of better products, but not feeling an impetus to look at their options, select the most appropriate, and initiate the switch.

According to figures from the Financial Conduct Authority, easy access savings had a total balance of £354bn in 2015, with 33 per cent of the cash held in accounts opened more than five years ago.

Matthew Hunt, chief operating officer of Pay.UK, which owns the Current Account Switch Service, said: “I’m pleased that CASS continues to provide evidence that helps us all to understand how to make financial services work better for consumers. Our research suggests that a savings account switch service might contribute to making the market more efficient and it could help customers who wanted to switch their savings to an account that better matched their needs.”

Click here to find out the best savings accounts currently available.

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

  • RT @Defaqto: Will your home insurance leave you out in the cold? 🤔 Only a fifth of home contents insurance policies, and a quarter of home…
  • Will your home insurance leave you out in the cold? 🤔 Only a fifth of home contents insurance policies, and a quar…
  • 10 reasons to get your #TaxReturn done now - and they could all mean more money for you! 💷 Questions about your ta…

Read previous post:
Low and middle-income households vulnerable to recession

A think tank is calling on the government to prepare for the next recession – and take income distribution into...