Are your savings undead?
Do you have your money in a ‘zombie account’? Obviously, zombies are useless things, always staggering around being completely ineffectual and moaning to themselves. Which is why it’s the term used for a savings account that pays minimal interest and just sits there, with bits falling off it.
The bad news is that a staggering (geddit?) 80% of savings are residing in (un)dead accounts that pay as little as 0.1% interest, and are shut to new customers. Even worse, 79% of us don’t even bother to check whether our money has got a pulse – we just let our pennies languish there eternally, not paying the slightest bit of attention to whether we're getting a good return.
So what can you do about it?
Well, at the moment, things are so bleak in the world of savings that you get a better return from a current account from one of the high street’s big bruisers. Nationwide Flex Direct, Clydesdale Bank and Yorkshire bank’s current accounts are offering 5% interest, but for one year only.
However, The Bank of Scotland, TSB, and Lloyds Classic Accounts with Vantage, as well as the Santander 123 account all offer a fairly healthy rate of 3.00% - while the Leeds Building Society five year fixed rate ISA comes in at 3.05%.
So if you can empty your zombie account without incurring a penalty, it might be time to get a defibrillator and see if you can reanimate your savings - before they start wandering around shopping centres with their arms outstretched saying ‘UHHHHHHHHHH.’