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Savers kept in the dark about rate changes, finds Which?

Many savings providers fail to keep their customers informed about important changes to interest rates on their accounts, according to new research from Which? Money.

The consumer champion found that only four of the 12 banks or building societies investigated guarantee to personally inform their customers of all savings rate changes, with most relying largely on adverts in newspapers or the chance of people popping into a branch to announce smaller rate cuts and rises.

Which? chief executive, Peter Vicary-Smith, said: "Our research shows that outdated and inconvenient methods of notice on interest rate changes are keeping savers in the dark for longer, at a time when they need greater disclosure than ever before. This is just another example of banks treating their customers badly."

A British Bankers Association spokeperson said: "If all customers were to be notified of all changes to their interest rates – as Which? has suggested – the costs to the environment, the economy, to banks and ultimately to customers would be considerable.

"Around 13.5m personal letters would have to be sent for each rate change; in 2008, when there were five negative base rate movements, this would have generated 67.5m letters. We believe this approach is proportionate and fair, ensuring customers who do not check the interest rates on their accounts do not suffer any significant disadvantage."

 

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