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British savers lose out by making a simple banking mistake

Millions of British savers are missing out on the chance to earn extra money by making a simple mistake, a new survey reveals.

A survey by the Building Societies Association (BSA) found that a third of people keep most of their savings in a current account.

The decision to mainly use a current account could see Brits lose interest that could exceed six per cent.

The best easy-access rate pays 5.05 percent from Paragon Bank.

NS&I also has the top one-year fixed rate at 6.2 percent.

However, a third of UK savers also admitted they have never compared the interest rate on their savings accounts with rival offers.

Three in 10 savers don’t even check interest rates at their own bank or building society.

Nine percent also chose not to review their accounts for a year or more.


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But the survey, which was published to mark UK Savings Week 2023, revealed interesting statistics about how much Britons are keeping in their pockets.

The average amount set aside by British savers amounted to £21,840.

However, more than half of people have less than £12,000 and one in seven adults have no savings at all.

Robin Fieth, chief executive of the BSA, said: “As savings rates have risen in recent months, shopping around now can make a considerable difference to the returns available.”

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The Financial Conduct Authority recently introduced a new consumer duty requiring firms to put customers at the center of what they do.

The decision includes designing your products and dealing with consumers.

The regulator has unveiled a 14-point action plan to ensure banks and building societies properly pass on interest rate rises to savers.

The FCA warned that nine of the largest savings providers only approved 28 per cent of the base interest rate increase on average between January 2022 and May 2023.

The Bank of England has raised interest rates 14 times since December 2021, with the figure reaching a high of 5.25 percent earlier this month.

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