Savers are missing out on £12 billion a year

Research from consumer advice organisation Which? has found that Brits are missing out on £12 billion a year because banks are keeping customers in the dark about savings interest rates.

The study found that almost half of the 1,200 plus savings accounts in the UK pay 0.5 per cent interest or less and one in four pays 0.1 per cent or less.

Which? revealed that banks aren't being upfront about these poor returns, with few even showing interest rates anywhere on regular statements or telling customers about better rates.

Peter Vicary Smith, Which? chief executive, said: "Banks are depriving British savers of £12 billion a year by keeping us in the dark about the pitiful interest paid on hundreds of savings accounts."

The consumer advice company is pushing for change and has secured a commitment from Royal Bank of Scotland, Lloyds Banking Group and Santander to improve the information they provide to their customers.

According to research carried out by Halifax, UK savers are investing almost a third of their income into ISAs.
 

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2010-10-27 12:10:57 © Moneyextra.com