Over £3.5bn could be missed in savings interest – how to avoid missing out

Nearly half of us can’t be bothered to switch our savings at the moment because we think the rates available aren’t worth it, according to our recent survey. And six in ten aren’t planning to switch their savings at all.

That’s despite more than a third saying they have more savings now than before the coronavirus pandemic.

This inertia with their cash is estimated to be costing savers over £3.5bn in interest, based on the difference between the lowest and highest easy access rates if they stay the same for a year.

It’s only natural that while rates are dropping, people get less excited about the best rates in the market.

But this means people are likely to leave their cash sitting dormant, earning nothing. There’s over £200bn sat in accounts which pay no interest at all, a figure which has risen by 15% since the start of the year alone.

The majority of people keep their savings with the same bank they hold their current account with. But they’re paying a hefty price for this familiarity. Most high street banks pay a paltry 0.01% on instant access products. If you’ve got £10,000 in one of those you’ll get a measly £1 interest after a whole year.

Why are savers settling for poor rates?

Overwhelmingly we’re not switching because we don’t think it’s worth it when rates are so low.

Why savers aren't switching

Source: HL survey of 921 UK adults.

People are also be put off by the hassle of switching to a new provider. In most cases it’ll involve wading through application forms, proving who you are and setting up new security information every time.

Then there’s the added hassle of keeping track of your money. Sounds exhausting, doesn’t it?

Active Savings can help.

An easier way to boost your cash

With one online account you can pick and mix multiple savings products from a range of banks and building societies. You’ll get a selection of competitive rates and more choice than a typical high street bank. For example you can get up to 0.96% on a limited access product – far above what most high street banks are offering on their instant access products. On the same £10,000 pot, that’s £95 more after just a year. This product allows you to access your money when you like, up to twice a year without incurring a charge. Full product details are on our website.

Opening new products is simple and can be done in a handful of clicks. And you’ll see everything in one place, so it’s easy to manage.

Easy and limited access pay a variable rate. Fixed term products pay a fixed rate. With fixed term savings you can't usually withdraw your money until the term has ended. With limited access products you can withdraw your money when you like, but only a certain number of times a year without incurring a charge. Instant access products allow immediate cash withdrawals, Active Savings offers easy access products where withdrawals usually take one working day. Inflation can reduce the spending power of money.

The Active Savings service is provided by Hargreaves Lansdown Savings Limited (company number 8355960). Hargreaves Lansdown Savings Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 with firm reference 901007 for the issuing of electronic money.