An investigation by Which? claims that people could be losing up to £360 on average per year, because they are not switching to bank accounts that pay better interest rates.
Their report has highlighted several of the best and worse offenders, both online and high street banks and building societies.
Which? wants the Banking Code to be used to force Banks and building societies to follow the base rate changes more closely, and plans to raise the issue as part of the next banking review.
Our view
A difficult call this one. We hear what Which? are saying and appreciate that it is in the best interests of the consumer.
The mitigating factors are:
1. The general public has a distinct apathy when it comes to money. You can, very expensively, drag a horse to water, but you cannot force it to drink.
2. Alternative view: You do not take your baked beans back to the supermarket that you bought at full price yesterday just because they have them on a BOGOF offer today (........ Buy One Get One Free)
3. We agree that banks should be "encouraged" to track more closely base rates.