HALF of UK adults have never switched savings provider, research has found.
A poll of 2,000 adults found a quarter think switching is too much hassle and 76% would need to gain an extra £150 in interest every year to make it worthwhile.
However, analysis has found a saver could in fact earn an additional £319 a year in interest if they were to switch from one of the high street banks’ easy access products to a best buy product paying a higher rate.
Mark Mullen, CEO at Atom Bank, which commissioned the research, said: “The big banks are making a fortune by not passing on rate increases to savers.
“We think savers should be getting paid, not played by their bank.
“It’s encouraging that the Treasury Select Committee and the FCA are challenging this behaviour but by far the best way to stop them profiting at the expense of customers is to encourage people to get online, vote with their fingers and move their hard-earned money to a better rate.
Read more on Money
Shop you’ve never heard of where you can get Adidas for £8 and trainers for £10
I’m a building expert – 5 cheap tricks to stay cool from as little as £1
“Let’s not forget, most savers are covered by the FSCS for sums up to £85,000 and have absolutely nothing to gain by remaining loyal to so-called safer banks that pay them derisory savings rates.”
Among those who have switched savings providers before, 21% do so only every two-to-five years.
This means they may have missed out on top deals since the Bank of England began increasing the base rate.
The study also found those who have switched providers have, on average, more in savings than those who haven’t switched before (£17,501 vs £4,001).
Most read in Money
Three month warning for Brits using major high street bank
Food giant triples prices in two years as shoppers battered by inflation
Major supermarket to close huge furniture stores within weeks – is one near you?
Martin Lewis' holiday trick saved me £1k – small print rules could help YOU save
For 13%, they’d switch just to get better customer service, but 76% are looking for better savings rates.
Mark Mullen added: “We need to drive better awareness and competition in order to turn the dial on this issue.
“The myth remains that switching banks is a time-consuming and difficult process.
“Savers today have the best rates at their fingertips, and just a few clicks on a decent app can earn them an extra few hundred pounds a year.
“The sooner people realise this, the sooner big banks will be forced to change their ways.”
Source: Read Full Article