Consumers ought to consider switching their savings accounts to other providers as they might not be getting the best deals available, according to a personal finance website.
Moneyfacts.co.uk claims that many current account providers have failed to fully pass on the benefits of recent base rate rises to their customers, with a quarter of savings accounts still paying less than the current rate of inflation.
Consequently, there is a widening gap between "savvy" consumers who are receiving high rates of interest and those with "legacy accounts", which may in fact lose money with the impact of inflation, the company states.
Rachel Thrussell, head of savings at Moneyfacts.co.uk, remarked: "For as long as consumers continue to adopt a lethargic stance to finding themselves an account paying a decent rate, there is no incentive for institutions to treat their savers more fairly."
"After all your savings should benefit you as the loyal saver, not be used to increase the profits for the banks and their shareholders," she concluded.
Moneyfacts.co.uk also noted that many of the best rates available are for internet-based savings accounts.
Recently, financial research company Defaqto warned that the days of free banking may be coming to an end, thanks to consumer and regulatory pressure on bank charges.
Consumers 'should consider switching savings accounts'
Consumers 'should consider switching savings accounts'
Thu, 22 Feb 2007
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