With rising rates and the impact of the cost-of-living crisis, almost three in five savers (59 per cent) now admit to shopping around to find the best rate for their cash savings.
According to research by Investec, half of savers have already moved an average of £17,360 each from their savings to get a better rate of interest.
A further 39 per cent plan to move their savings over the next six months.
In addition, almost one in five (19 per cent) have already moved over £25,000 of cash savings elsewhere.
David Hunt, head of retail savings at Investec, said: “Traditionally many savers can be put off switching due to the perceived hassle and time it takes – and in the recent past low interest rates have meant it often wasn’t worth their while.
“However, the impact of the cost-of-living crisis means that everyone needs to make their money work as hard as it possibly can and, coupled with a rising interest rate environment, there are some fantastic rates for savers out there now – and many are making the switch to reap significant financial benefits.”
Hunt said he would encourage all savers to review their savings and what interest rate they’re currently getting – and check if they can get more elsewhere.
The survey, which asked 1,098 UK adults between April 28 and May 2, revealed that deciding to switch comes after half of savers (49 per cent) had held their money in the same savings account for a year or more.
Some 7 per cent held it in the same account for five years or more.
Table shows how much savers have moved or plan to move to better paying accounts in the next six months
Amount | % moved already due to a rise in interest rates and the impact of the cost-of-living crisis | % plan to move in the next six months |
Average amount | £17,360 | £18,608 |
Up to £499 | 6% | 5% |
Between £500 and £999 | 8% | 7% |
Between £1,000 and £2,99 | 21% | 18% |
Between £3,000 and £4,999 | 10% | 10% |
Between £5,000 and £9,999 | 14% | 12% |
Between £10,000 and £24,999 | 15% | 19% |
Between £25,000 and £49,999 | 9% | 9% |
Between £50,000 and £99,999 | 7% | 6% |
Over £100,000 | 3% | 4% |
sonia.rach@ft.com
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