More than three-quarters of savers would like banks to make their savings accounts easier to understand, a new study from Ford Money shows. Many feel that the sheer number of accounts on the market, as well as the subtle differences between them, make it hard to choose and get the most out of their savings.
Indeed, 63% of respondents say savings accounts have too many gimmicks, such as expiring bonus rates, while 57% are simply overwhelmed by the number of products out there. Of course, if you're reading this you'll likely know that our savings charts can help cut down the number of accounts worth looking at by pointing you to the ones with the highest rates.
Additionally, we have an easy access chart without bonus rates for those who don't want to review their rate every year – although of course, these deals may not be as good, so you might want to check the with-bonus chart too just in case. However, if savers don't look at the details for their account, or the provider doesn't display this information in an easy-to-read fashion, it's understandable that mistakes can be made.
This may be why 7% of savers say they've been surprised by a withdrawal fee when taking funds out of a fixed rate bond, and 28% don't know what interest rate they're currently getting. "The complexity of the savings market means that, through no fault of their own, many savers may not be managing their money as effectively as they could be," said Suzanne Lewsley, Ford Money's chief deposits officer. "It is crucial that banks make their products easy to understand and use so that savers can make the most of their money."
When asked what providers can do to improve, 59% of savers say they want banks to pay new and existing customers the same interest rate, while 44% want fewer terms and conditions, and 40% would simply like a smaller variety of accounts to choose from. "While many banks are clamouring to offer the best interest rate to attract new customers, most savers are more interested in taking out a fair and consistent product that is straightforward to use," Suzanne concluded.
Banks may not always provide clear information, but here at Moneyfacts.co.uk we pride ourselves on our impartial charts and comprehensive information, so you should be able to find withdrawal restrictions and special features for each available account by clicking on the Details button in the relevant savings chart.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.