Banks urged to be more open about savings rates

Banks should be more open about savings interest rates whenever they communicate with a saver, according to Save Our Savers.

Jason Riddle, co-founder of Save Our Savers, said that some banks are exploiting the apathy of consumers.

His comments come after Which? revealed that almost two-thirds of savings accounts are paying 0.1 per cent or less, while 87 per cent of savings accounts available six years ago are now paying less than 0.5 per cent or less.

Mr Riddle said: "Whether you call it customer loyalty or consumer apathy, banks are expert at encouraging and exploiting the inertia of consumers who do not actively search out the best deals for their savings."

Save Our Savers has urged the government to introduce consumer savings products which provide a return that at least matches inflation as some banks are not interested in providing a rate above inflation.

NS&I found that Brits are setting aside £82.92 of their income every month, this is a decline from 12 months ago, when the population was saving £88.65.
 

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2011-01-19 15:04:05 © Moneyextra.com