Banks offer loyal customers poor returns

Almost nine in ten savings accounts that were available six years ago are now paying savings interest rates of 0.5 per cent or less.

According to consumer watchdog Which?, almost two-thirds of savings accounts are paying just 0.1 per cent, which equates to just £1 for every £1,000 saved.

Which? chief executive, Peter Vicary-Smith, said: "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."

He believes it is a scandal that banks and building societies are reserving the most pitiful returns for their most loyal customers.

The research carried out by Which? revealed that 35 per cent of savers still have money in a savings account opened six years ago despite the poor savings interest rates.

In November Which? discovered that British savers are missing out on £12 billion a year due to banks keeping customers in the dark about poor interest rates.
 

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2011-01-12 16:18:32 © Moneyextra.com