Consumers need to be more savvy about savings
According to recent data consumers in the UK are not being as savvy about their savings account as they are about their borrowing, and in many cases this could be losing them a small fortune in interest. Experts believe that because there is so much focus on debts and borrowing, many consumers assume that they have to shop around and be more careful when it comes to borrowing money, but since there is no real focus on savings many consumers may think that all savings accounts are the same, and really don't take all that much notice when it comes to where they put their savings.
The research concludes that fewer than fifty percent of savings accounts have been following Bank of England interest rate rises, which means that those borrowing money have to pay more on a variable rate loan but many of those saving do not receive any more. The research was carried out by Moneyfacts. According to officials from Moneyfacts many consumers are being 'careless' about where they put their savings, and are 'stuck in a rut' with their accounts, not realizing that they could get a better deal elsewhere or simply putting their savings accounts on the back burner in terms of priority.
One spokesperson for Moneyfacts stated: "I think there are the consumers who are stuck in a rut with their old accounts and don't really appreciate that they're getting a bad deal." Consumers that have existing savings accounts that do not pay much in the way of interest and do not have other relevant benefits are advised to shop around and compare a variety of savings accounts in order to find a best buy deal. Competition between financial institutions remains tough, and although not even half of savings accounts have followed interest rate rises, it is well worth the consumer seeking out an account that does now pay a higher rate of interest on savings.
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