Savvy savers vote with their feet and make the switch

Savvy Brits who are unhappy with their savings account are voting with their feet and switching providers, according to new research out today from Birmingham Midshires’ Saving Britain campaign.

With the empowerment of the internet and the proliferation of aggregator websites which offer easy-to-read comparison tables at the click of a mouse, British savers are taking advantage and are searching for an account that will make their money work harder. Birmingham Midshires can reveal that more than one in ten (12 per cent) Brits have either opened a new savings account or switched providers over the last three months.

One in four (24 per cent) Brits who have seized control of their savings claimed they switched providers because their savings account no longer met their needs. In light of recent exposés, poor customer service forced almost one in ten (8 per cent) savers into the hands of a competing savings provider over the past three months. Six per cent of savers took their business elsewhere when their provider cut savings rates.

Jason Robinson, director of savings operations for Birmingham Midshires commented on the findings: “More and more Brits are awakening to the fact that they need to take a proactive approach to their savings. Brits are shopping around and looking out for a savings account which suits their own specific needs while also paying back an acceptable level of interest. When they find it, they are voting with their feet. This is an encouraging trend and we strongly urge all savers to regularly review their savings account to ensure they are getting the best deal possible.’

Birmingham Midshires asked 2,000 people across the UK whether they had opened a new account or switched providers over the last three months and their reasons for doing so.

Other key findings:

Those aged between 25 and 34 are the most proactive savers, with 17 per cent either opening a new account or switching providers over the past three months

Those in the North East were most likely to switch providers in the first quarter (9 per cent)

People in East Anglia are most likely to suffer from savings account inertia, with just 2 per cent switching providers between January and March

Scots were most likely to switch providers because of poor service (29 per cent).

Men were more likely to switch providers because of a savings rate cut (11 per cent compared to 1 per cent of women)

Women are more likely than men to switch providers because of poor service (10 per cent compared to 6 per cent)