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Too many people in sloth accounts says Scottish Friendly

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Written by:
04/08/2014
As much as £65bn is being left in low rate ‘sloth accounts', because savers are not seeking out products paying better rates, according to research from ISA provider Scottish Friendly.
Too many people in sloth accounts says Scottish Friendly

The group found that 24 million people have not reviewed their savings account in over three years, while one in five savers (21 per cent) think that because they do not have a lot of money in their savings account it does not seem worth the trouble of moving.

5.2 million people have savings accounts linked to their bank, rather than seeking out products paying better rates. Scottish Friendly points out that leading high street banks are offering some of the worst interest rates on the market; some as little as just 0.05 per cent.

Of the 24m savers that have not reviewed their account in the last 12 months, just eight per cent said that they thought they were still getting the best rate on the market.

Neil Lovatt, director of financial products at Scottish Friendly, said: “Times are hard right now and we’re all feeling the pinch. It’s important to ensure we’re doing as much as we can to build a nest egg for the future – after all, what is the point in putting your hard earned money into an account that gives back just 0.05 per cent?”

“The perception that the act of changing accounts is an onerous one is flawed. In fact, it doesn’t take long to have a look at what’s out there, and it is a valuable process. A low interest sloth account is about as much use to savers as a chocolate teapot. We’re calling on today’s savers to take some time to consider their options. People who shop around stand a much better chance of seeing their money grow.”

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