Savings Ignorance

ooh_aah

I work in a contact centre for a large Uk Bank and mention to a countless number of people each day about how low their savings rates currently are and that we can improve on them. (for example they are currently getting say 0.05% and they can be upped to say 2%)

I would say that only about 1 in 50 are open to a discussion on improving their rate - the rest claim they haven't got time and will do it at a later date (which never happens!).

Has anyone out there been putting off improving their rates and if so why??!

Considering the battering Banks get for low saving rates at the moment you all would be amazed at how many people simply choose to leave savings at really low rates after being highlighed to the fact!

somethingcorporate

It's a valid point. Just think of it as an "apathy" tax.

Unless they have significant savings the difference between 2% and nothing is not very much and evidently they do not perceive it "worth" their effort. Unfortunately, by the time you have compounded this affect of decades they could have been significantly better off but that is their lookout.

CLAPTON

Probably a significant factor is that most of your customers assume all banks are untruthful and so are unwilling to discuss it with you.
They rightly know that many banks staff are sales people wanting to sell you insurance etc you don't want.

The banks prove what thieves they are by first offering decent saving rates on a product and then reducing the rate to damn all after a few months or offer a bonus for a period then the a/c pays 0.5%
They also make it very difficult to actually find out what interest rate you are receiving.

This is not the behaviour of honest people; it's the behaviour of crooks and cheats.

MrsCautious

I understand where Clapton is coming from.

If someone from my bank had this conversation with me, when I had say rung to find out something else on a recent bank statement, then I would make a mental note to look into it for myself, perhaps at the same time also researching other rates from other banks, then life would get in the way and I wouldn't get round to it.

I recently had a lump sum paid into my current account and the bank was excellent in moving it to a savings account for me, but the minute I tried to ask questions about the interest rates, they became very 'matter of fact' to me as if theirs was the best solution no question when this plainly isn't true, when I pressed further, they of course advised me to think again and in my view, attempted to make me somehow understand that leaving a lot of money in an account paying 1.8 per cent for 12 months (with a significant part of that being a bonus) was somehow a better prospect for my money than moving it to a fixed rate bond for 12 months (or longer) paying much more. I understand there are circumstances where this is the case but they don't apply to me and they know that. I found them patronising. They said I should call for advice before moving the money, I did and they tried to talk me out of it, recommending their own, this time different, savings account. I know there are plenty of wise MSE members who would say 'what did you expect?' in these circumstances but I have lost trust now with a bank I have been with as long as I have needed an account.

I've since divided the money up into various accounts including an isa, with varying maturity dates/interest rates. Not being concerned about this until the sad circumstances that brought this money into my account, I wasn't even aware of Vantage interest - I only learned that here, so thank you MSE for helping me get it added!

So forgive my wittering but what I'm trying to say in far too many words is that if someone from my bank gave me such information about their interest rates out of the blue, I'm sorry to say, at least part of me would be thinking 'where's the catch?' and I wouldn't jump at it.

mulronie

I have no time for sales pitches (or anything that smells like a sales pitch) when I call my bank.

Every time I call Lloyds they see I only have a current account with them (which they rarely notice is earning 4%), and try to sell me an online saver with a rate much worse than the 3.2% I get at Santander. As I'm comfortable with how I save my cash, I tell them I don't have time to discuss it rather than get into a tedious conversation.

innovate

ooh_aah wrote: »

I work in a contact centre for a large Uk Bank and mention to a countless number of people each day about how low their savings rates currently are and that we can improve on them.

Are you trying to lose your job, ooh-aah? Why are you trying to reduce the profits of your employer? May be you are not....that's one reason why customers might not be interested in your offers.

I have to agree with all the replies so far. It's incredibly rare that someone in a bank makes the best and most appropriate offer to you. Anyone serious about their money shops around on places like MSE and rates comparison websites, in order to make informed decisions.