Two out of five savers have not moved accounts in the past two and a half years

The study found that 43% of savers did not switch despite Bank of England rate rises and just one in five (19%) say they are considering moving money now that the Bank of England is cutting the base rate, which is likely to lead to lower rates in general across the savings market.

Around one in six (16%) of those who have not moved any money say their existing account already pays the most competitive rate, while 20% believe the extra interest they could have earned on their cash did not make it worthwhile switching.

However, one in three (30%) admit they just did not get round to moving any money despite rising rates. 17% say they are not concerned about the interest rate they earn on their savings. Around 13% say they never compare interest rates.

Among the 57% of savers who did move money in response to the general rise in savings rates over the past two years, more than two-fifths (43%) of them say they switched £10,000 or more to better paying accounts. Around one in twenty (5%) moved more than £100,000.

David Hunt, Head of Retail Savings at Investec Save, said: “Since the Bank of England started raising the base rate at the end of 2021 the savings market has become highly competitive with a wide range of new accounts being launched as providers compete for business.

“It is surprising that so many savers have not moved any money to better paying accounts over the past two and a half years. While many say they are already receiving the best rate, or that it’s not worth moving, many more are likely to be receiving lower rates than they could earn on their cash.

“With the possibility that the Bank of England will continue to cut rates it is even more important now for savers to ensure they have the right balance of accounts for their needs paying the most competitive rates.”

The bank offers a range of accounts, which do not have any penalty fees or hidden bonus rates, including its Online Flexi Saver and Fixed Rate Saver offering 1-Year, 2-Year or 3-Year terms.  The Online Flexi Saver is a simple and secure instant access savings account, provides instant access to savings, and allows unlimited deposits and withdrawals to a linked current account.

The Fixed Rate Saver provides simplicity and security for savers. Interest is paid on maturity on the 1-Year and annually on the 2-Year and 3-Year. No withdrawals are permitted until the end of the term, and no further deposits can be made after the first seven days. 

Investec’s Online Flexi Saver is a simple and secure instant access savings account. It pays an interest rate of 4.60% AER* monthly on balances of between £5,000 and £250,000, provides instant access to savings, and allows unlimited deposits and withdrawals to a linked current account.

¹ Investec Bank commissioned Viewsbank to survey 1,106 adults aged 18-plus in June 2024. The sample represented the demographic profile of the UK. Some 82% or 903 people surveyed said they have one or more savings accounts.
*AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once a year. The AER is intended to be an indicative rate to help you compare the return on different savings products.