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

Millions of savers caught out when bonus deals end

0
Written by:
29/09/2015
Millions of UK savers are missing out on higher interests by failing to switch their accounts when the initial bonus period ends.

Over the past five years, almost four million savers have opened accounts paying attractive short-term bonuses and failed to move funds once the deal ends, according to research by the Fairbanking Foundation.

When savers don’t switch, their money is left sitting in accounts paying little to no interest, the charity said.

The findings revealed that 48 per cent of savers simply forgot to move their money, 20 per cent didn’t know their deal had expired, and 19 per cent were so weary of chasing short-term benefits they opted to stay put.

One in four savers who have switched out of accounts because their bonuses expired since 2010, believe banks should automatically move customers to the best possible rate when this happens, while 57 per cent said banks should do more to remind customers to move. However 54 per cent believe it is the customers’ responsibility to move their savings for a better rate.

Antony Elliott, chief executive of Fairbanking Foundation, said: “Short-term bonus deals have proved popular with savers particularly given current low rates and many do benefit from the generous bonuses on offer and transfer out once the deal is over.

“However, significant numbers are forgetting to move, which does not help customers manage their money and improve their financial well-being. Many customers get tired of chasing short-term deals and want good long-term value which also makes business sense for banks as it improves customer loyalty and retention.

“There is also a risk people are put off saving and improving their finances because of the behaviour of providers. Around 21.8 million adults are not confident they are saving enough so clearly more needs to be done to encourage saving.”

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

Read previous post:
No ‘social housing effect’ on prices

Housing developments which contain a mixture of private and social housing are not worth less than solely private developments, research...

Close