A growing proportion of savers do not know the rate of interest they receive on their deposits, according to new research1 from Investec Private Bank (‘Investec’). Its latest Savings Monitor reveals that more than a third (36%) of savers, or the equivalent of almost 13 million UK adults2, are unaware of the rate of interest they are earning on any of their bank or building society accounts. This figure is up from 32% six months previously3.
Investec believes that this confirms that there is now greater uncertainty among consumers about the rate of interest paid by banks and building societies on their savings accounts. It warns that this should be of particular concern to savers with larger balances (£25,000 or more) who typically receive a rate of just 0.95% gross AER4. This compares to the Investec High 5 Account5 which currently pays 3.15% gross AER6, 2.65% above the Bank of England base rate.
The findings show that the proportion of people who know the exact rate of interest they are receiving from their savings has also dropped over the last six months from 22% to 19% of savers. A quarter (25%) of savers know the approximate rate of interest paid on their deposits, says Investec.