Jun 19 2006
Millions of savers are throwing away around £1.9 billion by not investing in accounts with better interest rates, according to new research.
Figures from comparison site uSwitch.com revealed that despite some high street banks only offering 0.1 per cent interest, two-thirds of customers would not consider switching accounts because they feel it would be too problematic and time-consuming.
Consumers who are normally in credit and occasionally overdrawn are advised to compare different accounts for better interest rates.
For example, Alliance & Leicester offers 4.89 per cent on first £2,500 saved, Lloyds TSB will pay 3.93 per cent on the first £5,000 and if investors have balances more than they need it is best to transfer to a high-interest savings account.
"Even if you operate your current account in credit, it's worth arranging a small overdraft limit in case of need," says Michelle Slade, personal finance analyst at Moneyfacts.co.uk told the Scotsman.
"This will prevent you being hit with an unauthorised fee of up to £30, or having your cheque bounced, if you dip into the red."
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