The Telegraph reports that savers are losing £3.5bn a year in interest on account of an inability to summon the energy to switch and many people remaining loyal to high street banks even though these often offer worse rates than smaller, rival firms. According to the Centre for Economics and Business Research, customers with Barclays, HSBC, Lloyds, Royal Bank of Scotland and Santander account for £827bn of the total £1.3 trillion saved in the UK.
And while they are set to make £3.4bn in interest on their savings over the next year, this would more than double, to £7bn, if they swapped to better deals with rivals, the study, which was commissioned by savings platform Flagstone, found. The same is true in many other savings areas,” adds the article. “All the current top rates for one to five-year bonds and ISAs are for deals supplied by non-high street lenders.”