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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

Not switching banks is costing savers billions, says Hargreaves Lansdown

Out of the 2,000 people surveyed, nearly half have not switched savings accounts in the past five years

Hargreaves Lansdown said there is £267.8bn languishing in bank accounts paying no interest at all, costing savers up to £7.4bn a year, based on a 2.75% interest rate.

Research commissioned by the financial services company said that ditching the high street banks which offer low-interest rates could result in greater savings through a higher rate of interest.

Out of the 2,000 people surveyed, nearly half have not switched savings accounts in the past five years, while 35% of people have never switched.

According to the research, the most common reason for not switching was rates were too low to bother with, with 32% of respondents saying this.

Twenty-six per cent of people trusted their bank so did not want to leave, while 18% thought switching was too much hassle.

“Save your loyalty for your loved ones: your bank doesn’t deserve it. Sticking with a high street giant despite disappointing savings accounts paying miserable rates of interest, is costing us billions of pounds,” said Sarah Coles, senior personal finance analyst at Hargreaves Lansdown.

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