Average saver gets 2% interest
Thursday, 05 Jun 2008 00:01
Savings accounts disappointing with low interest rates
The average saver with £5,000 is earning just two per cent interest.
By not being savvy with savings accounts Brits are losing out on an average of £188 a year – according to analysis by the Post Office.
In total £8 billion in interest is lost a year by Brits – either too lazy to earn more money or unaware better accounts exist.
Around 30 per cent of savers admit they have no idea of the interest rate on their savings.
Furthermore 39 per cent do not know if their savings rate has changed recently – which is a great risk as opening high rates offered by banks and building societies often disperse after a year.
Richard Norman, director of savings at the Post Office, said: "It's time savers started to take care of their savings by choosing a home for them wisely - especially in the current economic downturn.
"There are hundreds of poor paying accounts, so people need to avoid them."
Savers who do not know how much interest they are earning should contact their provider to find out and switch if it is too low.
"Although it might be tough to put money away at the moment, it is more important than ever to make sure your existing savings work as hard as they can for you," Mr Norman said.
"Anybody who is looking to open an account needs to check out the interest they will earn, and how easy it will be to access their funds."