Uninformed Savers lose Billions
A consumer group reveals that savers lose billions of pounds every year by storing their money in low-return accounts. In the UK, half of the saving account providers offer less than 0.5% interest.
It is assumed that approximately an amount of £12 billion could be in the pockets of savers who intelligently move their money to high-return accounts.
The reason why so many savers miss out on the extra cash is because their financial institutes of choice do not make transparent how high the returns actually are. That does not make the customers conscious about better deals.
Chief executive of Which?, Peter Vicary-Smith explains: "Banks are depriving British savers of £12 billion a year by keeping us in the dark about the pitiful interest paid on hundreds of savings accounts. Whilst we pressure the banks to be more upfront about their rates, people can take action and potentially add hundreds of pounds a year to their savings by moving their money to a better account."
The British Bankers’ Association defends the financial institutes by pointing out that clients can easily find out about return-rates in branches or online and even get notified by their financial institutes in case of important changes. Additionally, savings rates always depend on the time period the cash is stored and on the amount, the saver can spare.