Some new research from independent financial research company Defaqto has found it is possible to get up to 298 times more savings interest by regularly switching your account.
With interest rates in the UK remaining at a historic low of 0.5%, and with little prospect for any rate rises this year, savers will want to maximise their net interest returns.
Defaqto found that the interest offered by the average new instant access or easy access savings account is now at its highest level since the Bank Rate fell to 0.5%.
In contrast, many established savings account offer dismal interest rates; with 22% of these paying interest of 0.1% or less on a balance of £1,000.
Looking at an analysis of different saver behaviour, they found that those that switched to the most competitive savings account once a year received the highest level of net interest; £71.73 net interest over three years on a balance of £1,000.
Those that stayed with the lowest paying easy access savings account for three years received net interest of just £0.24.
Reviewing your savings accounts on a regular basis makes real financial sense. This is something we encourage our clients to do and can help them with at each annual review meeting.
The banks tend to profit from inaction, with savers left in uncompetitive savings accounts simply paying towards bonuses for bankers.
Reviewing the rate of interest you get on your savings at least once a year should be a relatively straightforward activity, and the rewards are worthwhile.
Photo credit: Flickr/ginnerobot
