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Loyal savers rewarded with ‘pitiful returns’

Loyal savers rewarded with ‘pitiful returns’

Category: Savings

Updated: 12/01/2011
First Published: 12/01/2011

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 It is now over 6 months old so the content may be out of date.

Savers who stay loyal to their bank are seeing their faithfulness rewarded with pitiful rates of interest, according to new research.

Which? Money found that more than a third (35%) of savers still have money in a savings account which they opened six years ago or more, despite the low levels of interest they are receiving.

The survey revealed that almost nine in 10 (87%) savings accounts that were available six years ago are now paying interest of 0.5% or less.

Almost two-thirds (62%) are paying 0.1% or less, which equates to just £1 a year for every £1,000 saved.

However, nearly four in ten (38%) trusting savers said they wouldn't switch savings account because they think all savings interest rates are pretty much the same.

In reality, this could not be further from the truth.

Which? calculates savers could on average earn an extra £322 a year in interest if they moved their money to the most competitive versions of their savings accounts available on the market.

The latest revelations come just a few months after Which? suggested that British savers miss out on additional income of around £12 billion a year because banks keep information about their interest rates under wraps.

"All too often, banks and building societies lure in savers with attractive rates of interest, then reward their loyalty by quietly slashing rates to a paltry level later on," said Which? chief executive, Peter Vicary-Smith.

"It's a scandal that banks seem to reserve the most pitiful returns for their most loyal customers."

Why not see if you could be earning a better rate of interest on your savings by checking out our savings best buy charts?

Find the best savings rates for you - Compare savings accounts

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