Millions miss out on better savings rates by not switching savings accounts | AdminBox

Millions miss out on better savings rates by not switching savings accounts

Millions miss out on better savings rates by not switching savings accounts

The FCA this week stated the millions of people are missing out on better savings rates by not switching accounts. A large number of people don’t switch on leave money in old accounts on which the introductory rate has passed. 

After the Bank of England raised its base rate this week from 0.5% to 0.75%, attention has focused somewhat on savings accounts. Rather than waiting for your bank to change its saving rate, many people could get a much better deal by switching away from an old savings account to one of the better buys. 

The leading rates for instant access savings accounts are now over 1%, so switching now is more lucrative than waiting and hoping the base rate increased is applied to their existing savings account. 

The FCA recently suggested that banks may be forced to set a minimum interest rate on savings accounts, rather than forcing consumers to switch constantly to secure a good rate. Savers could gain an additional 0.82% by switching savings accounts. 

However, the rates are relatively immaterial, so that even a 1% rise in savings interest rate would add only 20p per week to many people’s savings. 

  • 04 Aug 2018
  • By: Emma Bruce