Savers have been told to check their interest rates as they could be missing out on £1,848 per year. Members of the public polled by LHV Bank found that more than half of UK savers believe they’re not making the most of their savings rate. Millions are believed to be sitting on a savings pot without an interest rate worth their time.
The survey found that despite 95% of people checking their balance frequently and 69% knowing where all of their savings are held, there is a lack of awareness over the best deals on interest rates. It could mean some Brits are missing out on £1,848 every year, with higher interest rates bringing more cash.
LHV Bank is calling on the industry to make interest rates as visible and easy to check as a balance. Its findings show savers are highly engaged, yet left in the dark on whether their rate is competitive, with three steps issued by the bank as a means of becoming what they describe as an “active saver”.
Their tips for becoming an active saver includes checking your rate, moving your money if the rate doesn’t beat inflation, and making a habit out of saving money away.
Alex Beavis, Interim Director of Banking, LHV Bank said: “Our research shows people know where their money is, but far fewer know if it’s earning what it should – and fewer still are doing anything about it. Providers need to do more to close that gap. Savers deserve simple, transparent products that deliver what they promise, not rates buried under small print and performative gimmicks.
“There are also some key steps that savers can take to make the most of their money. Being an Active Saver means checking your rate as often as your balance, comparing it to the market, and being willing to move your money if your rate isn’t pulling its weight. And don’t assume an account that once looked competitive still is because, chances are, it isn’t.”
Experts have also told active savers to be wary of bonus rates that vanish after 12 months, telling people to keep checking their bank accounts and how much they’re actually saving.
Rates for these accounts can often be buried but LHV Bank has called on people to hunt down the details to see if their account is offering them a suitable interest rate.
