Savers believe accounts are “too complex and gimmicky” and want more simplified ways to save, according to research from Ford Money.
The financial provider has found that nearly two-thirds (63%) of savers dislike that many accounts come with gimmicks, such as initial bonus rates. Often these bonus rates expire after 12 months leaving customers facing the need to switch again or put up with a poor interest rate.
Worryingly, more than a quarter (28%) of savers don’t even know how much the interest rate on their account is, and don’t keep track if it changes.
Meanwhile, more than half (56%) say they are overwhelmed by the number of products available. Confusion is leading savers to being charged withdrawal fees they are unaware of – 7% say they have been caught out this way.
The majority (59%) of those surveyed add that new and existing customers should benefit from the same interest rate.
Suzanne Lewsley, Ford Money’s chief deposits officer comments: “The complexity of the savings market means that, through no fault of their own, many savers may not be managing their money as effectively as they could be. It is crucial that banks make their products easy to understand and use so that savers can make the most of their money.
“While many banks are clamouring to offer the best interest rate to attract new customers, most savers are more interested in taking out a fair and consistent product that is straightforward to use.”