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Saga: Savings rate comparison is 'simple yet important'

08 September 2009 / by Andy Davies

Two thirds of savers have admitted to not knowing the current rate of interest on their savings accounts, Saga Personal Finance has revealed.

Despite the current economic climate, 61 per cent of Brits do not keep track of their savings account interest rate, while Saga's findings suggest that the average savings account is kept for ten years.

In addition, a quarter of people only check how much interest their savings account earns when it is first opened and a further 25 per cent only check them once a year or less.

Saga believes that as the Bank of England Base Rate is unlikely to change in the near future, savers could be missing out on better deals, which could bolster their income by not switching to a new account.

Despite many savers' loyalty preventing them from switching, around 59 per cent of Brits said they are unhappy with the current level of interest rate they are receiving.

Reacting to these findings, Andrew Goodsell, executive chairman of the Saga Group, said: "Having a competitive rate of interest on your savings is a simple yet important aspect of anyone's financial arrangements but few people act on this."

It appears that the over 50s are more aware of how their accounts are performing as 49 per cent said that they know how much interest they earn.

In contrast, 68 per cent of younger savers confess that they do not keep track of how much interest they receive.

Explaining a solution to this problem, Mr Goodsell said: "If you're not going to regularly check your savings rate then fixing a great rate now is a practical way of making sure you know what your savings are earning."

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