Think your bank now treats you reasonably well? Think again. New research just out from consumer champion Which? shows that UK savers are missing out on a massive £12bn a year, thanks to the very low interest rates paid on their accounts.
There are 1,200 different savings accounts in the UK. Almost half of them pay interest of less than 0.5%. Worse, one in four pays a mere 0.1% or less. That comes to a mere £1 a year in interest for every £1,000 you have saved up.
That’s all bad enough in itself, but possibly even more irritating is the lengths to which banks will go to prevent customers noticing the extent to which they are being ripped off. Few banks actually state their rates on statements or feel they should alert customers to better rates available elsewhere.
On the plus side, Which? has created a new tool called the Savings Booster. With it, you will be able to instantly see how much your account is paying, check out better rates and get started on moving your money.