Trust dominates savers' choice

A year of financial upheaval has left trust as important a factor as interest rates for savers.
 
A poll of 954 people by Chelsea Building Society highlights how turbulence in the financial world is changing people's preferences on the ground – despite changes to savings protection rules guaranteeing the first £35,000 of savers cash if a bank goes bust.
 
Trust has also pushed back factors such as having online or phone access to accounts.
 
Darren Stevens, director of customer services at Chelsea Building Society, said: "Despite the efforts providers put into promoting innovative online and telephone systems and the gimmicks they employ to entice savers, our recent research shows that these are having little effect upon today's consumers.
 
"As the market continues to tighten and costs increase, savers need to know that the money they can actually afford to save is with a trusted provider."
 
The poll revealed 51 per cent of people said the highest interest rate was important when choosing an account – with the sale number saying easy access to cash was important.
 
Fifty per cent also stated trust was mattered when choosing accounts.
 
The research also showed people are keen to get high interest now – over steady gains.  Just 23 per cent said consistently competitive interest rates but not the best was important.
 
This leave a trap for savers, as often banks and building societies will offer short-term high rates to attract customers. However, teaser rates can fall after a set period – meaning consumers have to be on their guard and switch cash to the next best buy savings account.
 
The poll also looked at why people trusted banks.
 
Some 65 per cent of people surveyed said trust was based on being able to speak directly to UK staff and 62 per cent cited fast response to queries.
 
Well-trained staff and friendly service were why three fifths said they trusted a saving provider.