Interest rates eluding Brits

Posted: 06 Apr 2009 13:14:29 GMT

More than 50 per cent of savers in the UK are unaware of the rate of interest they are paid on their main savings account.

Research conducted by consumer website uSwitch.com has found that the falling Bank of England base rates have led to both confusion and ignorance of the interest paid on normal bank accounts.

The consecutive drops to the Bank of England base rate means that 2.5 per cent of respondents to the uSwitch.com survey confirmed that they no longer cared what interest rate was paid on their main account.

Without knowledge of what is being paid, however, consumers run the risk of losing out by remaining a customer of a bank or building society which pays a below-par level of interest.

Such a lack of knowledge is even more important at present as the income from savings accounts is likely to be much-needed to save for mortgage deposits.

"What is concerning is the sheer number of savers who have become so despondent by the effects the base rate cuts that they have absolutely no idea about what level of interest they are earning," said Rumina Hassam, personal finance expert at uSwitch.com.

Those suffering from a low interest rate while house hunting may wish to look for a home online, which could prove cheaper than using traditional estate agents.



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