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105076
Savers missing out on £12bn a year
October 26, 2010
By Rachel Constantine

According to a new report by Which? savers across the country are losing out on a massive £12 billion a year by keeping their money in savings accounts which offer poor interest rates.

The consumer group revealed that almost half of the 1,200 plus savings accounts on offer in the UK pay 0.5 per cent interest or less.

Amazingly, one in our accounts only pay 0.1 per cent or below – which would mean that savers accrue a miserable £1 a year for every £1,000 saved.

Which? suggests that if savers were to move their money to the accounts which paid out better interest rates, they would receive an extra £322 a year.

The group also claims that consumers are being 'kept in the dark' about returns, as hardly any banks make a point of showing interest rates on statements or inform customers about accounts that pay better rates.

Which? wants changes to made to the savings situation and is pushing to ensure that account providers publish interest rates on all statements, clearly display all savings account interest rates online and provide each customer with an annual notice of savings interest rates.

Amongst those providers already signed up to the deal are Royal Bank of Scotland, Lloyds Banking Group and Santander.

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