What percentage of interest is applied to your savings account? Don’t worry if you don’t know. You’re not alone. Thousands of people have personal savings accounts that earn them under the market average and yet they decide to stay put because of the hassle they would endure to adjust.
But things are about to change! Impetus has been given to The Payments Council who will educate Britain on the best ways to switch between banks.
The question is what will happen as a result of this change? I can feel a ‘price war’ coming on with Banks offering a vast array of products, more complicated than Joe Public can handle, on a variety of comparison websites.
The Mail on Sunday acknowledges that ‘even Sherlock Holmes would find it hard to find value for money in this un-friendliest of market places.’ And we know that despite all the smoke and mirrors of offers and incentives, after 6months all banks will revert to similar rates and products.
Will you benefit? If you are a savvy saver, and don’t mind the hassle that comes with shifting your money between banks every 6 months then you might be able to. For everyone else, who don’t have the time to analyse the best rates on a weekly basis, will have to take a longer term view by which point you might decide to not to go anywhere at all.
Our advice is don’t be suckered in by the bright lights and excellently delivered market spiel or the incentives. Go for the deal that shows the most common sense with a provider that ranks highly for customer service.
We would love to hear your thoughts on whether you will switch when the time comes?