Nearly 19 million savers oblivious to rate of interest

With some savings accounts paying the highest rates of interest the market has seen for around six years, Sainsbury’s is urging savers to make sure that they check the rate paid on their account to make sure it is competitive.

This follows new research from Sainsbury's Savings which reveals that almost 49% of people with savings accounts – around 19 million people - do not know what rate of interest their money is earning and an additional 10% of savers only know what some of their accounts are paying. Only 41% of people with savings accounts claim to know the rate of interest they are receiving.

This means that as much as £112 billion could be sitting in accounts where the savers do not know the rate of interest being paid. Research commissioned earlier this year revealed that nearly 40% of savings accounts were paying less than 3%, highlighting the importance of keeping a close eye on the rate of interest.

Peter Wood, Head of Savings at Sainsbury’s, commented: “There is a real and worrying level of apathy amongst savers when it comes to checking that their money is earning a good rate of return.

“Savers should be looking to take advantage of some of the great rates available – there are at least 71 instant access and notice accounts all offering rates of at 6% or more. When shopping around they should consult best buys - our Internet Saver, which is only one of six to offer over 6% on balances of £1 without any bonus or restrictions, has just been named the most consistent best buy account."

Saving a large or small amount of money does not always have a bearing on whether people will pay close attention to their rate. For example while 9.24 million people with up to £2,000 have no idea what rate their savings account pays, 429,000 people with over £60,000 in their savings accounts don't know either.

The Sainsbury’s Internet Saver account pays 6.25% AER on balances from £1. The rate does not depend on an introductory bonus and does not restrict the number of withdrawals they can make from their account. Moneyfacts identifies the Sainsbury’s Internet Saver as the most consistent Internet Savings Best Buy Account over the past 18 months.

For further information on its range of savings accounts, visit sainsburysbank.co.uk.