Avoid the 0.1% club

If you’ve got money in a savings account and haven’t checked the rate for a while, you could be in for a shock. Lots of accounts are paying 0.1% or less – potentially costing you hundreds or even thousands of pounds of lost interest..

With the Bank of England Base Rate at 0.5% you shouldn’t expect too much from your savings. But shopping around should net you 2.5% or more, significantly more than the 0.1% or less paid on a surprising number of savings accounts.

While banks and building societies often offer competitive rates on a select few accounts to tempt new customers, it’s almost a sure fire bet that the rate will gradually decline over time – or rather suddenly if there’s a temporary bonus attached. It’s a profitable move as experience suggests that many savers won’t bother moving elsewhere to a more competitive rate.

I’m stating the obvious, but check the interest on your savings regularly and if the rate’s uncompetitive then move! Don’t hesitate; switching accounts is straightforward, especially as many competitive accounts can now be opened online.

To find out more read our new Review Your Savings Accounts Action Plan.

Here’s a list of some offending savings accounts paying 0.1% or less gross a year. If you have money in one of these accounts then move it to a better rate elsewhere faster than you can say Jack Robinson. And even if your account isn’t listed below check the rate you’re getting – this list is just the tip of the iceberg...

Account	Interest (AER gross on lowest balance)
Barclays
e-savings account	0.10%
Cash ISA	0.10%
30 Day Savings Account	0.10%
Postal Savings	0.10%
Bonus Saver	0.05%
Easy Saver	0.10%
Cheltenham & Gloucester
Direct Transfer	0.05%
London Account	0.05%
90 Day Account	0.05%
Branch 10	0.05%
Direct 30	0.05%
Investment Account	0.05%
Halifax
Variable Rate Web Saver	0.10%
Variable Rate ISA Saver	0.10%
Premium Savings Direct	0.11%
Instant Saver	0.10%
Saver Reward	0.10%
Extra Income Saver	0.10%
Liquid Gold	0.05%
60 Day Gold	0.10%
HSBC
Flexible Saver	0.05%
Premier Savings	0.10%
Instant Access Savings	0.05%
Lloyds TSB
No Notice Saver	0.10%
Exclusive Saver	0.10%
Flexible Savings Account	0.10%
Gold Saver	0.10%
Instant Access Saver	0.10%
Online Saver	0.10%
Platinum Saver	0.10%
Standard Saver	0.10%
Select Saver	0.10%
Nationwide
e-Savings Plus	0.10%
CashBuilder	0.10%
Natwest
First Reserve	0.10%
Reward Reserve	0.10%
30 Day Bonus Reserve	0.10%
Savings Direct	0.10%
e-savings Plus	0.10%
Diamond Reserve	0.10%
Telephone Saver Plus	0.10%
Santander
Easy ISA	0.10%
Instant Access Saver	0.10%
Monthly Saver	0.10%
Instant Access ISA	0.10%
Super ISA 1	0.15%
ISA Saver	0.10%
Passbook Saver	0.10%
Direct Premium	0.10%
Everyday Saver	0.10%
TimeSaver	0.10%
Postal Notice Account	0.10%
Branch Saver	0.10%
Direct Notice	0.10%
Direct 60	0.10%
60 Day Plus	0.10%
Bonus 120	0.10%
Bonus Account	0.10%
All rates as at 29 April 2010

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