MSE News: Plans to make it easier to compare and switch savings accounts revealed

Former_MSE_Helen · 20 January 2015 at 10:33AM

"FCA research has found that 80% of easy-access accounts have not been switched in the last three years..."

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Plans to make it easier to compare and switch savings accounts revealed

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colsten · 20 January 2015 at 11:47AM

Could a mod please merge this with http://forums.moneysavingexpert.com/showthread.php?t=5156994? Thanks

Credit-Crunched · 20 January 2015 at 12:44PM

MSE_Helen wrote: »

"FCA research has found that 80% of easy-access accounts have not been switched in the last three years..."
Read the full story:

Plans to make it easier to compare and switch savings accounts revealed

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

Is it up to the finanical providers to let people know where the best savings are? Or should there be an onus on the individual to ensure that the best rates are being received.

Should Tesco tell people that milk is cheaper at Asda?

I dont think that it is hard to switch savings, it is the fact that people are lazy?

Archi_Bald · 20 January 2015 at 1:09PM

I agree. On the one hand, people scream blue murder about the nanny state, on the other they decide not to get out of their nappies.

6_6_6 · 20 January 2015 at 1:37PM

Credit-Crunched wrote: »

Is it up to the finanical providers to let people know where the best savings are? Or should there be an onus on the individual to ensure that the best rates are being received.

Should Tesco tell people that milk is cheaper at Asda?

I dont think that it is hard to switch savings, it is the fact that people are lazy?

I suppose it hinges on whether financial products are truly comparable to a bottle of milk ? Financial institutions have been given free reign to invent a range of marketing devices aimed to bamboozle, hoodwink and unnecessarily present barriers, like any capitalist entity, its innately anti-human by nature. It is only right for these markets to be cleared up and regulated. Its just a shame marketing in general isn't targeted for the utterly BS industry it is. Bedsides, I'm not sure making simple information much easier to find is conflatable with having to list your competitors prices.

jimjames · 20 January 2015 at 2:16PM

6_6_6 wrote: »

I suppose it hinges on whether financial products are truly comparable to a bottle of milk ? Financial institutions have been given free reign to invent a range of marketing devices aimed to bamboozle, hoodwink and unnecessarily present barriers, like any capitalist entity, its innately anti-human by nature. It is only right for these markets to be cleared up and regulated. Its just a shame marketing in general isn't targeted for the utterly BS industry it is. Bedsides, I'm not sure making simple information much easier to find is conflatable with having to list your competitors prices.

Rubbish.

It's laziness. The time taken to check interest rates paid is tiny. People find the time to go on social media, use sites like this then claim they don't have the time to change energy supplier, check rates etc.

It really isn't very hard to do. More to the point so many people have such little savings that moving them would not make a big difference anyway.

Credit-Crunched · 20 January 2015 at 2:36PM

6_6_6 wrote: »

I suppose it hinges on whether financial products are truly comparable to a bottle of milk ? Financial institutions have been given free reign to invent a range of marketing devices aimed to bamboozle, hoodwink and unnecessarily present barriers, like any capitalist entity, its innately anti-human by nature. It is only right for these markets to be cleared up and regulated. Its just a shame marketing in general isn't targeted for the utterly BS industry it is. Bedsides, I'm not sure making simple information much easier to find is conflatable with having to list your competitors prices.

I think you may have missed something that is pretty unique in the financial services industry that makes comparing rates actually pretty easy.

Its called APR and AER.

This is not hoodwinking number work, it is simply mathematical equations.

Try comparing rates in energy sector, you need a degree in maths to calculate the kw/h + standing charges + discount rates etc

It is simple, if your savings account is paying 0.3% AER and the building society next door is paying 1.3% AER, then ask for a cheque, go next door, and pay the cheque in.

I can not see in this process how it is the capitalistic evil monster that is making this process difficult. It is just down to customer apathy or lazyness, or heaven forbid they want to stay with their bank or building society because they like the counter staff, or it is close to their home, or they like the online banking facilities, or the bank has a car park?

It is more than interest rates that drive behaviours.

"It is only right for these markets to be cleared up and regulated"

Again something that you have missed! Arguably the most heavily policed and regulated market on a consumer level.

Many industries would be out of commission if they faced the level of micro and macro management that the financial services industry faces from the FCA.

spenderdave · 20 January 2015 at 7:09PM

With rates being so low at the moment anyway it is hardly worth moving between them. I have money from an old Santander esaver which is now sitting in an Everyday Saver earning 0.5% - I could set up a new esaver and move it over, that would give me an attractive 0.7% rate!!! Or I could in April put it into one of their ISAs at a staggering 1%. Even the 2.8% on a one year pensioner bond is hardly worth it for little more than the government gives me every year in my fuel allowance. All this information found in a few minutes online.

Lets face it, savings accounts are just not worth the hassle.

Archi_Bald · 20 January 2015 at 7:48PM

spenderdave wrote: »

With rates being so low at the moment anyway it is hardly worth moving between them. I have money from an old Santander esaver which is now sitting in an Everyday Saver earning 0.5% - I could set up a new esaver and move it over, that would give me an attractive 0.7% rate!!! Or I could in April put it into one of their ISAs at a staggering 1%. Even the 2.8% on a one year pensioner bond is hardly worth it for little more than the government gives me every year in my fuel allowance. All this information found in a few minutes online.

Lets face it, savings accounts are just not worth the hassle.

You are right, savings accounts are barely worth it these days. Still, why would you turn down over twice the interest?

Moreover, you can get a lot more if you think outside the box a little. How much is in your esaver? Why is it not worth transferring the money to TSB Plus, Club Lloyds, Tesco, BOS Vantage, or even simply Santander 123?

savingsomemore · 20 January 2015 at 9:17PM

spenderdave wrote: »

With rates being so low at the moment anyway it is hardly worth moving between them. I have money from an old Santander esaver which is now sitting in an Everyday Saver earning 0.5% - I could set up a new esaver and move it over, that would give me an attractive 0.7% rate!!! Or I could in April put it into one of their ISAs at a staggering 1%. Even the 2.8% on a one year pensioner bond is hardly worth it for little more than the government gives me every year in my fuel allowance. All this information found in a few minutes online.

Lets face it, savings accounts are just not worth the hassle.

Goodness me, how lazy.
You must be mad.
For no more effort than sitting on your bum on your computer for a few minutes, even with £2000, the difference at the end of the year between you (santander)and me (TSB) is that your interest might buy you a macdonalds, and mine will buy me (and a friend) a slapup meal in a posh restaurant with a good bottle of wine.
And all because i read these boards and do a very little bit of research.
Its not difficult, or complicated, or any effort whatsoever!!

jimjames · 20 January 2015 at 9:26PM

spenderdave wrote: »

With rates being so low at the moment anyway it is hardly worth moving between them. I have money from an old Santander esaver which is now sitting in an Everyday Saver earning 0.5% - I could set up a new esaver and move it over, that would give me an attractive 0.7% rate!!! Or I could in April put it into one of their ISAs at a staggering 1%. Even the 2.8% on a one year pensioner bond is hardly worth it for little more than the government gives me every year in my fuel allowance. All this information found in a few minutes online.

Lets face it, savings accounts are just not worth the hassle.

I even get 1% in my main current account. Other accounts pay 5%, that's 10x more interest that your savings account.

You can also get £250 by switching accounts and £60 per year using Halifax. If you had £2000 that would be an incredibly high interest rate!

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MSE News: Plans to make it easier to compare and switch savings accounts revealed

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