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Consumers missing out on current account interest

Consumers missing out on current account interest

Category: Banking

Updated: 14/12/2012
First Published: 31/08/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

UK current account customers are missing a trick when it comes to earning interest on their current accounts.

In tough times, people are finding increasingly creative ways to make their finances stretch further, but a lack of knowledge on current accounts and the interest they can pay seems to be widespread, according to research by Lloyds TSB.

Despite the historically low Bank of England interest rate, the research reveals how current account holders are not making their money go further on interest paying current accounts.

Almost two thirds (64%) of respondents do not know what their current rate of interest is, despite the amounts paid fluctuating widely from bank to bank.

However, nearly half of respondents (42%) would be motivated to switch to an account paying a better rate of interest, and of those who would switch to a better interest rate four out of five of them are motivated by long term rates.

The cost of apathy for UK current account holders could amount to as much as £148 on an annual basis or £444 over a three year period.

"Most people have a current account yet not everybody is aware of the earning power that exists," said Jatin Patel, current account director at Lloyds TSB.

"Interest earning current accounts can help consumers make their money go further and earn up to 3% with minimal effort."

"The rates offered aren't just for new customers or for limited periods so account holders considerably benefit over the long term."

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