Egg finds 24 million Brits are clueless about their savings account rate

25 February 2009 / by Rachel Mason
Brits are burying their heads in the sand when it comes to their savings accounts, according to Egg.

The internet bank has found that despite falling savings rates and advice to spread savings around different providers, 24 million people have no idea what their current savings rate is.

Furthermore, seven in 10 have not moved or even spread their savings between providers in the last six months, which means that millions of people are stuck with poor paying savings accounts – some with rates as low as 0.1 per cent.

Egg has found that despite the fact that 31 per cent of people say the interest rate is the most important factor when choosing a savings account, 67 per cent – around 24 million in total – are oblivious to their own savings rate.

The survey also revealed that many Brits don’t have savings at all – 14 per cent say they have no savings account and no plans to open one or start saving in the near future.

Of those that do have savings, a third are saving less than they were a year ago.

Dean Proctor, head of Egg savings accounts and investments, said that although times are tough, saving has never been so important, and encourages those who have no savings to start putting some money away.

"Everyone knows the importance of saving, especially in these unprecedented times when it is essential to have a nest egg," he said.

He also highlighted the importance of insuring cash is secure and urged people to spread their savings around to ensure their money is safe in the event their savings provider runs into trouble.

"People need to know their money is safe as well as earning a decent rate of interest, he explained, "and recent government commitments to guarantee savings up to £50,000, per authorised entity, will reassure savers, but finding a reasonable interest rate can be more of a challenge.

"With base rates at a historical low, our portfolio of savings products are competitive, flexible and easily accessible."

To find out if you could be getting a better rate on your savings, check out the Egg savings account or compare savings accounts deals and apply online for a better rate.

© Fair Investment Company Ltd