You need to shop around for best savings accounts

Apparently Britons have not got into the habit of comparing interest rates and as a consequence up to a third are missing out on a total pot of £9.4 billion. In addition, another 57% have never moved their savings to another account in order to get a better deal.

Banks aren't keen to let their customers know when rates change so customers should always be on the lookout for the best rates. Which? Money recently conducted a survey that found that only 4 out of the 12 building societies and banks they questioned personally tell their customers every time there is a change in savings interest rates.

The MD of Informed Choice said that people, including limited company contractors, who are just starting to save cash for the future are particularly apathetic when it comes to looking for the best deals. He advises everybody to conduct a 'shopping around' exercise at least once a year to ensure they are getting the best deals.

He also pointed out that there is a big enough gap between the worst and the best interest rates to make switching worthwhile.

David Black from Defaqto pointed out that the more generous savings accounts are no longer on the market and the majority of accounts on offer now pay rates below the RPI inflation rate. Therefore, savings are actually growing more slowly than average prices.

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Image: Old Savings @ Union Sq. by Mauropm