£12bn lost because banks don't tell us about best deals

26 October 2010

"I feel let down, me"
You saver types are missing out on stacks of dough thanks those snivelling little jerks, wriggling around like cockroaches in grease... aka The Banks. Collectively, there's £12bn a year in interest payments going missing because banks and building societies are failing to inform us of better-paying accounts.

Thanks for that.

Research by Which! found that nearly half of the 1,250 savings accounts on offer paid a rate of 0.5% while one in four pays 0.1% net or less – just £1 a year for every £1,000 saved.

If you have the Ulster Bank Easy Access savings account, or Newcastle Building Society's Nova Plus Issue 3 account, then you'll be thrilled to learn that they're paying out an astonishing 0.01% . That's a return of 10p for every £1,000 saved. Those paying 0.1% via frankly pointless accounts are Halifax, Nationwide, Barclays, HSBC and Santander. They're a gift that just keeps giving aren't they?

So what does this mean?

Well, you could stamp your feet and go all Veruca Salt on us, but it's a clear signal that you need to start shopping around because banking swine are clearly not in the business of actually trying to help you out.

Using savings data from the Bank of England, Which! reckon that there's a difference of £12bn between the interest savers are currently earning on their money and what they would earn if they moved to an equivalent best-buy account. That's £322 a year for you personal, on average. Granted, that's more vague that Fern Cotton thought processes.

Because banks only have to stick an arbitrary notice up in the branch to inform their customers of changes in rates, this means that, say, in the case of Halifax customers, they might have an Instant Saver account that's doing nothing for them when they could be getting a better rate of 2.6% with the same company's Web Saver Extra.

Over at Santander, if you've got the Flexible Passbook Saver account, you should be looking at ditching that in favour of their Flexible Isa Issue 3. It's worth checking those accounts to see if they can work harder for you (but read the smallprint).

It's reported that the accounts from the big providers paying a paltry 0.1% are Halifax Internet Saver, Nationwide Cashbuilder Book, NatWest First Reserve, HSBC Flexible Saver, Barclays eSavings and Santander Flexible Passbook Saver.

TOPICS:   Banking   Investments

13 comments

  • Nobby
    In todays "The Bankers Times", there is a very similar headline ... £12bn saved because customers are too fucking lazy or just too fucking stupid to switch to best deals
  • The B.
    Our whole universe was in a hot dense state, Then nearly fourteen billion years ago expansion started. Wait... The Earth began to cool, The autotrophs began to drool, Neanderthals developed tools, We built a wall (we built the pyramids), Math, science, history, unravelling the mysteries, That all started with the big bang. Sorry, it was stuck in my head.
  • PokeHerPete
    Is that Earth Song?
  • Mark C.
    @Nobby - I agree. I went in and asked Nationwide if my paltry wages could be earning more interest in a different account, and they gave me a completely rundown of which of their accounts were worth having, and which not worth bothering with. Generally every other bank I've been with has been quite happy to provide this information too.
  • Richard
    I can always tell when mof gimmers has written an article because 99% of the time it's terrible.
  • Ali
    Whilst I am the first to admit I could sort this by changing accounts, I was shocked to find at the start of this year that my "High Interest Web Saver" Account with HBOS which is accessible only through online banking renamed itself to a "Web Saver" Account. This resulted in an instant drop from about 4.5% to 0% interest. Fair enough, I knew I'd openend a variable rate savings account, but it hadn't crossed my mind that they'd vary the interest rate to zero without letting me know...
  • yippy Y.
    Let's see how quickly our new people friendly government jump on this one now it's news.
  • poo p.
    Isn't this like saying "Millions lost each year because shoppers still buying their groceries in Waitrose instead of ASDA". It's up to the consumer to shop around for the best deal. Who has fucking savings anyway.......?
  • AyePet
    Who does't have savings? Why live hand to mouth? Not having anything for a rainy day is typical of our consumerist must-spend culture, what good does that do us???? How is being in debt useful in the long term at all??? Bear this in mind, China saves 50% of it's income. Can you imagine Western nations doing that? Of course not, we're obsessed with materialism to the point where we have the biggest debts in Europe moneysupermarket moneyfacts etc can all compare financial products for you Setup reminders as to when your "bonus" is up on your savings then you can just move it.
  • AyePet
    Anyone who lives in a house with a mortgage where a rise in interest rates would reduce their disposable income to the point of massive detriment has no business having a mortgage. Most of Europe rents, the result? They have a higher quality of life as they aren't pwned by the banks every month by that mortgage payment. Most people with under £20,000 saved aren't beating inflation at all, all it's doing is remaining stagnant. Who's fault is that? the low interest rates, which isn't improving borrowing it's just giving a timeout to houseowners and mortgages. The sooner the rate goes up and savers get their interest rates back the better, anyone with a mortgage who is so easily badly effected by interest rates should move into rented accommodation. Owning your house is a luxury majority of Europe does not have, why should savers be punished so UKers can have it?
  • evil r.
    MY EYES DEY ARE BLEEDING!!!
  • piggeh
    Yeah, let's all go rent. Then we can all pay a grand a month to pay off somebody else's extortionate mortgage payments and get fuck all in return. I would all be for a change in culture but tbh with the price of rent being in line with mortgage payments, there's little point unless you cant save a deposit in the first place.
  • Nobby
    > Can you imagine Western nations doing that? > Of course not, we’re obsessed with materialism to the point where we have the biggest debts in Europe I thought most nations in Europe were also classed as Western nations.

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