Sumary of Savings warning: Bank loyalty costs savers billions – act now as inflation rises to 3.2%:
- Savings rates remain at rock bottom levels at the moment but despite this, new research shows savers are reluctant to find better deals.
- Hargreaves Lansdown surveyed 2,000 adults from across the UK about their savings attitudes and habits in September 2021. The results showed 50 percent of savers have not switched savings accounts in the past five years, with 37 percent having never switched at all.
- Sarah Coles, a personal finance analyst at Hargreaves Lansdown, issued a warning about how dangerous this could be.
- “Our loyalty to our bank, and to savings accounts paying miserable rates of interest, is costing us billions of pounds,” she said.
- “Even if we just switched the money collecting dust in accounts paying no interest at all we could make £1.6billion in interest, and if we switched those paying rock bottom rates in high street accounts, we could save billions more.
- “Ms Coles went on to break down some of the key elements that are holding savers back from acting.
- Too low to bother”It’s easy to see why people don’t think it’s worth the effort of switching while rates are so low,” she continued.
- “But rates have picked up in recent months, so if you’re earning next to nothing in a miserable high street savings account paying 0.01 percent, you could make 65 times the interest by switching to the most competitive easy access rate on the market, or 150 times the interest by tying your money up for a year.