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Savings accounts neglected as busy savers don't check rates

07 October 2009 / by Rachael Stiles

Savers are lackadaisical when it comes to checking the rate they earn on their savings accounts, research from Chelsea Building Society has revealed, potentially wasting valuable interest.

Despite the current economic climate leaving interest rates at record lows, making it a particularly bad year for savers, many are not bothering to check on the rate they are getting.

Of those with less than £5,000 in their savings accounts, four in five do not bother to check their savings rates regularly, while three in five of those with more than £50,000 saved let their accounts fall by the way side.

Rather, people have other things to worry about, the survey found, with people placing paying bills, remembering birthdays, and household chores higher on the priority list than making sure they are getting the best rate possible on their savings.

In fact, checking interest rates and managing their finances comes in at an average seventh place on people's priority lists. One in 10 respondents admitted that it is the very last thing that they would tackle after arranging social events and their other daily tasks.

Recent evidence suggests that many savers have lost out financially by having to withdraw money from fixed rate savings accounts to make ends meet.

With this in mind, Chelsea is encouraging savers to take a more proactive approach to their savings accounts, and to select an account that meets their demanding lifestyles.

Jenny Hudd, product manager of Chelsea Building Society savings accounts, commented:  "More than ever customers want their savings to deliver what they need; today's lifestyles mean that people are hard pressed to monitor rates and manage their finances on a day to day basis.

Chelsea is "seeking to encourage people to choose the right account for their needs," Ms Judd added, "whether that is instant access, tax free savings, or being able to set money aside - and leave it there - for a longer term."

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