Millions of Brits have never switched financial products, losing out on £1,524 in annual savings because they “can’t be bothered” or are loyal to their provider.
Two out of five UK adults compare prices on beauty treatments, while 35% said they shop around for the best subscription deal.
However, when it comes to our savings, we’re not so proactive in choosing a better provider.
Research from Wealthify revealed that 16 million Brits have never switched their savings account provider, which has cost them a collective £6.7bn per year – that’s £426 per person.
A third stuck to their savings firm, while 41% said they have never switched current account provider. However, switching current accounts could help Brits save an average £246 per year.
Wealthify also suggests a £426 per year saving can be made by switching investment platforms, and the same £426 saving when switching credit card provider.
This means that those switching credit, savings and investment account providers could save an average £1,278 per year.
One in four have switching inertia
However, one in four (23%) of those that stay put instead of switching said they simply cannot be bothered to switch their investment account provider, with a similar proportion (24%) not being bothered to switch their savings account or current account provider.
For others in the poll of 2,000 people, they trust that they have chosen the right product, while 22% mentioned they’ve been with their bank for a long time and trust it’ll give them a good rate.
Meanwhile, one in five stated that it’s more hassle to switch savings and investments, with a further 14% saying they feel savings and investment rewards “are all the same”.
The research comes as the wealth platform launches an instant-access savings account paying 4.91% AER/4.8% gross (variable) paid monthly on a minimum £1. There are no withdrawal fees or penalties for accessing your cash.
Andy Russell, CEO of Wealthify, said it wanted to tackle the savings problem “head on” as it launched a simple, straightforward savings account that “offers savers a rewarding rate that tracks the Bank of England base rate minus a margin, ensuring customers get the best available returns on their savings”.
However, according to Savings Champion data, the current top-paying instant-access savings account is offered from Monument paying a higher 5.01% AER, but you’ll need a hefty £25,000 to get this deal. Alternatively, you can earn 5% AER with just £1 with Principality Building Society.
