Consumer lethargy "hitting savings accounts' returns"

Apathy means consumers often fail to secure the best rate of interest for their savings, it has been revealed.

Research conducted by Investec Private Bank in conjunction with Moneyfacts found many savings accounts are slow to pass on increases in interest rates effectuated by the Bank of England’s monetary policy committee (MPC).

However, the survey discovered that rather than switching savings accounts to secure a better deal, consumers are choosing to stick with their existing suppliers.

"I guess it’s just clients are looking for reliability and consistency; they don’t always want to be chopping and changing their bank accounts," explained Linda McBain, head of banking and treasury at Investec Private Bank.

"So I think people are aware of it, it’s just a matter of priority. You don’t want to be changing your bank account every couple of months."

Concerned that many savers are being short-changed as a result, Ms McBain has urged consumers to be as proactive as possible in this area.

"I would always say: be prepared to change and be proactive around monitoring," she advised.

"Don’t allow apathy to creep in because that’s what a lot of institutions rely on."