North Swindon MP, Justin Tomlinson, has backed consumer champion Which?'s 'Scrap the Savings Trap' campaign at an event in Parliament.
The campaign, which has gained over 31,000 supporters since launch in May, is calling on the banking industry to tackle poor practices that are leaving savers out of pocket. Recent Which? research into the current savings market has found that people are actually losing out on £4.3 billion a year by leaving savings in poor value accounts.
Which? research also found that eight in ten (82%) of the easy access savings accounts and cash ISAs on the market are 'zombie' accounts closed to new business and often paying very low rates of interest. Four in ten (39%) of these pay 0.5% or less, of which 41% pay a pitiful 0.1% or less.
Three-quarters (75%) of those who responded to Which?'s Savings Satisfaction survey agreed that banks don't do enough to help savers get a good deal, Which? is calling on banks and building societies to 'Scrap the Savings Trap':
- Don't leave customers languishing in sub-standard savings accounts - close 'zombie' accounts and move people's money into one default easy-access or ISA account at the end of fixed terms.
- Stop making ISA switching complicated and laborious - make switching quicker and stop limiting transfers into new ISAs.
- Don't leave customers in the dark about the best return on their savings – display interest rates prominently and consistently on all statements, annual summaries and online pages, improve notifications about the end of bonus rates or fixed terms, and ensure better offers are promoted by staff and in statements.
Justin Tomlinson MP, said: "I am backing Which?'s campaign to Scrap the Savings Trap. Many of my constituents will be saving hard for the future and this is why it is so important to ensure that providers do everything they can to help them get the best possible returns."
Which? Executive Director, Richard Lloyd, said: "With many savers never switching because they don't think it will make a difference, savings providers should do more to help their customers get the best deal. Banks and building societies must scrap the savings trap and free savers from poor value accounts."
To support the campaign, people can go to which.co.uk/savingstrap
