71% say it's important their savings earn the best rate
69% do not know what rate their savings are earning
The average saver has kept their main savings account with the same provider for 14 years
New research* from Saga Secure Savings has revealed that most of the UK's savers (69%) do not know what rate their savings are earning, and yet nearly three-quarters (71%) say it's important their savings are earning the most competitive rate available.
Despite claiming how important it is that their savings are earning the best rates of interest, over two-thirds of savers (70%) say they can't be sure their interest rate will be competitive in 12 months time, and 50% say they check their interest rate only once a year or less.
Andrew Goodsell, Chief Executive of Saga commented: "The research shows that UK savers have all the right instincts when it comes to finding a good home for their money. However, the theory isn't necessarily working out in practice as people are not regularly checking interest rates, meaning that they could be missing out on the most competitive rates. Switching accounts is an increasingly easy process, and we would urge all savers to check their savings rate to make sure they are making the best of their money."
Worryingly, the survey also revealed that one in five people are unaware that some providers, include an introductory bonus in the rate when the account is first launched to attract investors, but there is no guarantee of what the rate will be in the future. If these people are amongst those that do not check their rate regularly then they could be unaware of the low interest their savings are earning.
When asked what prevented them from switching accounts, savers highlighted convenience as a factor - two thirds said that they would not switch because their savings provider is located conveniently, despite the fact that internet and telephone savers can operate their account from the comfort of their living room. A further 43% said that they would not switch as they like to hold all of their accounts with the same provider.
The Saga Secure Savings Account aims to pay a good rate for as long as the account is left open. Investors are guaranteed to receive not less than 0.25% below base rate for as long as the account is open. This removes the need for the over-50s to constantly check the interest on their savings as they can be confident that the rate they get will be consistently competitive.
For further information please visit www.saga.co.uk or call 0845 850 0664.
Notes to editors:
* Research carried out via telephone omnibus on behalf of Saga by BMRB between 10th - 12th June 2005 amongst a sample of 2035 adults aged 17 in Great Britain.
For further press information please contact the Saga Press Office on: 01303 771529.