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UK savers may be missing billions in interest by not switching banks
Analysis from Hargreaves Lansdown, using FCA data, estimates staying with a current account costs British savers about £12bn a year in missed interest.
British savers may be giving up significant returns by sticking with the same bank for years, as UK banks increasingly offer switch incentives, including bonuses up to £220, according to BBC Business.
A survey by Hargreaves Lansdown of 3,000 British adults in August found 34% moved their money in the prior 12 months, while almost two thirds had been with their bank for more than a decade.
The firm estimates that choosing not to switch costs savers around £12bn annually in missed interest, based on analysis of Financial Conduct Authority data, with Hargreaves Lansdown’s Simon Belsham arguing that inertia leads to poor returns for savers.
The article also notes that switching deals can come with conditions such as depositing a minimum amount soon after opening an account or maintaining a minimum number of direct debits, and that the Current Account Switch Service covers transfers for eligible payments across more than 50 banks and building societies.