Millions of savers are being urged to check their interest rates immediately, as new research suggests they could be missing out on up to £1,848 per year. A survey conducted by LHV Bank found that more than 50% of UK savers believe they are not maximising their savings rate, leaving substantial sums of money on the table.
Lack of Awareness Despite Frequent Balance Checks
The poll revealed that while 95% of people check their savings balance regularly and 69% know exactly where all their savings are held, there is a significant gap in awareness regarding competitive interest rates. This disconnect means many Britons are sitting on accounts with low returns without realising the potential loss.
According to LHV Bank, the average saver could be forfeiting £1,848 each year by not switching to a higher interest account. The bank is calling on the financial industry to make interest rates as visible and easy to compare as account balances.
Three Steps to Becoming an Active Saver
LHV Bank has outlined three key steps for savers to take control of their finances and become what it terms an "active saver." These include checking the current interest rate on savings accounts, moving money if the rate fails to beat inflation, and making a habit of setting aside savings regularly.
Alex Beavis, Interim Director of Banking at LHV Bank, said: "Our research shows people know where their money is, but far fewer know if it's earning what it should – and fewer still are doing anything about it. Providers need to do more to close that gap. Savers deserve simple, transparent products that deliver what they promise, not rates buried under small print and performative gimmicks."
Beware of Bonus Rates and Small Print
Experts also warn savers to be cautious of introductory bonus rates that expire after 12 months, often leaving accounts with much lower returns. They advise continuously monitoring bank accounts to ensure the rate remains competitive. LHV Bank encourages customers to actively seek out the details of their savings accounts and compare them with market offerings.
The warning comes alongside a broader call for transparency in the banking sector, as many savers remain unaware of the true performance of their accounts. With inflation eroding purchasing power, even small differences in interest rates can have a significant impact over time.
