11th March 2014
Up to £5 billion in interest is being lost for those savers whose money languishes in low interest paying accounts says SavingsChampion.co.uk as it launches a campaign for the Government and regulators to make switching savings accounts significantly easier.
The firm says that 50% of all easy access savings accounts are paying 0.50% or less in interest and argues that rates would be more competitive if easier switching was allowed.
It is petitioning Chancellor George Osborne for a fairer deal for the nation’s savers by simplifying the process of switching savings accounts in the next Budget along the lines of action already taken on current accounts.
Savingschampion.co.uk argues that there is currently a lack of consistency and all providers have their own processes, leading to confusion and lack of confidence in simply moving money from one account to the next.
The firm says making it easier to switch savings accounts will lead to greater competition in the savings market, something that is “seriously lacking at the moment” and suggests that the Government continues at look to ways to support borrowers whilst continually ignoring the plight of savers.
Anna Bowes, Director of independent savings advice site SavingsChampion.co.uk says: “We would like savings providers to make it easier and less complicated for savers to move their money – in a similar way to what has been done in other areas such as current accounts, cash ISAs, energy, credit cards and broadband. You should simply tell your new provider details of your existing account and they should do the hard work for you.
“Switching bank accounts has recently had an overhaul, including reducing the time it takes to just seven days – and now through our Switch My Savings campaign we are calling for a review of switching savings accounts.”