Over half of savers don’t know how much interest their account pays

Despite the rates on savings accounts having spiked in the last few years, more than half of people have no idea how much interest theirs pays. 

Some 59 per cent of savers don’t know the interest rate on their main savings account, research from consultancy firm Accenture reveals.

And almost a quarter won’t move their money to a new provider if they are offering a better deal, meaning savers could potentially be missing out on hundreds of pounds.

It highlights the lukewarm relationship consumers continue to have with savings accounts and banks, despite decent savings rates being on offer. 

Rates are heading down from their peak as the Bank of England base rate falls, but the best easy-access accounts still pay 4.75 per cent while some cash Isas pay an even better 5.7 per cent. 

Even so, 29million people miss out on £20billion annually in interest by leaving money languishing in current accounts and low interest savings accounts instead of moving it to high-interest savings accounts, research from Paragon Bank reveals.

Uninterested? More than half of savers don’t know the interest rate on their savings account

One in three people have £5,000 sitting in their current account, while the average current account balance is £2,067. 

While some current accounts do pay interest on the balance, this is rare – and any rate paid is likely to be less than that of a savings account. 

Meagre savings rates from big banks plays a part in the lack of enthusiasm around saving.

Though the average easy-access account pays 2.78 per cent, according to rates scrutineer Moneyfacts Compare, the average interest rate offered on easy-access accounts by the big five high street banks is just 1.25 per cent.

Apathy from savers is perhaps a more fundamental problem when it comes to taking charge of savings and actively seeking the best account for them so they grow as much as possible.

This inertia is not translating into loyal customers for banks, however, and customers are still quick to ditch and switch for perks. 

Some 67 per cent of consumers hold multiple bank accounts, according to Accenture, which challenges traditional bank loyalty. 

The Current Account Switch Service (Cass), which facilitates bank switches, recorded more than 1million bank account in the past 12 months, with 222,805 happening in the first three months of the year.

Many customers flock to new bank accounts and ditch their main bank without looking back if the new account if offering a cash bonus on joining. 

Nationwide Building Society scooped up 81,584 new customers in the last three months of 2024 for this very reason, the most recent Cass figures show. 

Many will also open a new bank account if it offers them fee-free spending abroad. 

But there is evidence that some banking customers want perks of a different kind. 

Almost half of consumers are interested in personalised retirement planning tools when it comes to their banking and a further 43 per cent want access to financial wellness programmes. Some 43 per cent would value financial coaching or advisory sessions.

Rebecca Bezzina of Accenture says: ‘In a world where switching is easy and loyalty is passive, it’s no longer enough to be the default option. 

‘Customers want more than functional service; they want to feel understood, valued and supported in their financial lives.’