How a third of savers lose interest by keeping their money in a checking account
- Three out of 10 savers say they never check their rates at their own bank
Around a third (34%) of people with savings keep most of this money in a checking account, according to a survey that indicates they could be missing out on better returns elsewhere.
Many current accounts do not pay any interest on the balance, although banks and building societies generally have recently been improving their offers for savers as interest rates rise.
People can choose from a range of savings accounts to suit their needs, such as instant access offers, longer-term offers where money is locked in for a set period and tax-efficient Isas.
One in seven (15%) adults have no savings at all, according to the survey, published for UK Savings Week 2023 (September 18-24).
Many current accounts do not pay any interest on the balance, although banks and building societies have recently improved their offers for savers.
Three in 10 (30%) savers said they never check their rates at their own bank or building society and one in 11 (9%) have not checked their accounts for a year or more
The research was commissioned by the Building Societies Association (BSA), which also found that around a third (34%) of UK savers never compare the rate on their savings accounts with others available on the market.
Three in 10 (30%) savers said they never check their rates with their own bank or building society and one in 11 (9%) have not checked their accounts for a year or more.
Robin Fieth, chief executive of the BSA, said: “With savings rates rising in recent months, shopping around now can make a considerable difference to the returns available.”
The Financial Conduct Authority (FCA) recently introduced a new consumer duty, requiring financial firms to put customers at the heart of what they do, including when designing their products and dealing with consumers.
In July, the regulator set out a 14-point action plan to ensure banks and building societies are properly passing on interest rate rises to savers.
The FCA wants to ensure that savings providers pass on fee increases and communicate with customers much more effectively and offer them better deals.
Of those who have savings, the average amount set aside is £21,840.
More than half (52%) of people with money saved said they had less than £12,000.
Opinium carried out two surveys for the BSA, each involving 2,000 people across the UK, in June.