Lazy savers are being exploited by banks and building societies that offer saving accounts that pay interest below the current rate of inflation, according to research by leading industry newspaper Financial Adviser.
Many instant access accounts were found to pay less interest than the annual current consumer price index of 1.6%. The former Consumers Association, Which?, have claimed that many people keep their money in accounts out of a sense of misplaced loyalty, as account holders were too apathetic to look around for a better rate. They believe that as the base rate is now at 4.75%, there is no reason why investors should not be moving their money into accounts paying 5% or more.
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We suggest that most people spend hundreds of pounds getting their car MOT'd each year. Yet our savings, investments and pensions are rarely reviewed.
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