Blind loyalty making banks less competitive
By S Hunt, 30th June 2010
Savers' reluctance to switch banks is costing them thousands of
pounds, according to fresh research.
Many customers are loath to move their money because they
suspect that changing banks would be too much hassle, and that any
benefit would probably be minimal.
However, according to research by moneysupermarket.com, the
average UK resident loses almost £3000 a year by remaining loyal to
their current bank.
Kevin Mountford of moneysupermarket.com argues that there is an
apathy towards savings endemic among bank customers which drives
them to keep things simple by doing all their banking with one
company. This in turn saves banks from going to the trouble of
providing competitive deals on all of their services.
The value of mixing and matching was illustrated by the
research, which found that although HSBC represents the best value
as an overall service provider, it only came out on top in one
category among current accounts, mortgages, ISAs, easy access
savings account, loans, credit cards and more.
Mr. Mountford advised that a regular review of your savings is
essential, especially in such financially stringent times. He said:
"At a time when finances are tight, and things are not likely to
improve in the near future due to potential tax rises, pay freezes
etc, it is more important than ever to take control and make the
most of every penny you have."
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