In response to the Financial Conduct Authority’s interim report on the cash savings market, Which? executive director, Richard Lloyd, said:
“Which? has found that consumers are losing out on billions of pounds from savings stuck in poor value accounts and the banks are simply not doing enough to help their customers get the best deals.
“While the regulator continues to investigate this market we think providers should scrap the savings trap and do more to help people make the most of their money. Banks should be crystal clear about interest rates, let people know when bonus rates come to an end and make it easier for people to switch ISAs.”
Our research has found:
- People are losing out on £4.3 billion a year by leaving savings in poor value accounts.
- Three-quarters (75%) of people don’t think banks do enough to help savers get a good deal.
- Fewer than one in five (17%) savers know what their interest rate is exactly.
- A quarter (25%) of those with a bonus rate don’t know when it will end.
Which? is calling on banks and building societies to ‘Scrap the Savings Trap’:
- Don’t leave customers languishing in sub-standard savings accounts – close ‘zombie’ accounts and move people’s money into one default easy-access or ISA account at the end of fixed terms.
- Stop making ISA switching complicated and laborious – make switching quicker and stop limiting transfers into new ISAs.
- Don’t leave customers in the dark about the best return on their savings – display interest rates prominently and consistently on all statements, annual summaries and online pages, improve notifications about the end of bonus rates or fixed terms, and ensure better offers are promoted by staff and in statements.