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