Loyal customers are losing out as banks focus on attracting new savers in an attempt to build capital reserves. Following the onset of the economic downturn, banks and building societies have sought to entice savings account holders as it became harder to obtain funding from other sources. Savings accounts are often accompanied by a bonus payable after 12 months, thought these incentives may mask the meagre interest rates . With many of these bonuses already paid out, or imminently due, many savers will now be earning very little on their savings, while they could actually be losing money once inflation is accounted for.
Savers who opened a Santander eSaver 2 account last May for example, are set to have their bonus expire, meaning rates will down from 2.5 per cent after tax to just 0.4 per cent. Account holders of the original eSaver are earning just 0.08 per cent. Holders of savings accounts with Egg will see a similar decrease in their returns. As a result of the miserly interest rate offerings, savers could now be earning less than a pound a year in interest.
Banks Taking Loyal Savers for Granted
Financial Services > e-banking > Banking news
Banks Taking Loyal Savers for Granted
Fri, 07 May 2010
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