Zombie savers urged to check their savings accounts

Many savers have money deposited in long-forgotten savings accounts and could be suffering from low interest rates as a result.

According to research from Ford Money, almost one in 10 of UK adults have discovered savings languishing in forgotten accounts, with savers leaving their money untouched for an average of over four years. Dubbed zombie savers, these savers are unearthing money in unused accounts and in accounts that have been declared dormant by their provider.

Leaving money untouched in savings accounts could mean that savers are missing out on competitive savings rates. In fact, research from Moneyfactscompare.co.uk shows that there has been a year-on-year increase in saving accounts offering rates that are below the Bank of England base rate. There is a total of 293 savings accounts that are currently offering rates below the 0.75% base rate, which is an increase from 273 accounts last year. Of these accounts, 234 are variable rate accounts, while just 59 are fixed rate accounts. This research highlights the need for savers to remain vigilant of their account’s rates and to move savings regularly to get the most competitive rates available.

Suzanne Lewsley, chief deposits officer at Ford Money, said: “Our research revealed that almost one in five (18 per cent) savers find products too difficult to understand and can often forget about some of their savings accounts. In some cases, this confusion has resulted in consumers depositing all their cash into a single current account, without opening a separate savings account that earns a better interest rate.”

Rachel Springall, finance expert at Moneyfactscompare.co.uk, added: “While it may seem a hassle to some, it is vital that savers make time to check the rate on their savings accounts regularly. As time marches on, savers could find that they are not being rewarded for their loyalty, which is why monitoring the top rate tables and switching is essential to get the best possible return. Making small steps to review any accounts is important to keep in the mindset to chase down a better deal, such as making a diary date in the calendar, as you would with an insurance policy. Granted, there might not be too much difference between the top rates, but if savers have an account with a high-street bank, the gap in interest is likely to be much higher, so they could well benefit by switching.”

Savers wanting to move their money into an account offering a better rate should look at our savings charts to see the most competitive rates currently available on the market.