Brits burying their heads in the sand when it comes to savings

Despite the assumption that the nation is now placing more scrutiny than ever on its finances, a new study by leading internet bank Egg has revealed that the vast majority of savers (69 per cent) have not been looking for competitive deals by moving providers or spreading their cash into different accounts in the past six months - meaning that many people will now be stuck with very poor paying savings accounts, some as low as 0.1 per cent.

In addition, the survey highlights that as many as 24 million Brits are still completely oblivious to the rate on their savings account. This is despite the majority ranking ‘interest rates' as the top priority (31%) when it comes to choosing a savings provider in the current environment, closely followed by how sound or trustworthy a provider is (29 per cent), and ease of access to savings (20 per cent) .

Dean Proctor, Head of Savings and Investments at Egg, said: "Everyone knows the importance of saving, especially in these unprecedented times when it is essential to have a nest egg. People need to know their money is safe as well as earning a decent rate of interest. Recent government commitments to guarantee savings up to £50,000, per authorised entity, will reassure savers but finding a reasonable interest rate can be more of a challenge. With base rates at a historical low, our portfolio of savings products are competitive, flexible and easily accessible."

Worryingly, one in seven (14 per cent) Brits also admit they have no savings at all and do not plan to start saving in the near future. Of those who are saving, a third (33 per cent) is saving less now than they were a year ago. This is particularly concerning for those over 55, of which 13 per cent, or as many as 2 million, have no savings at all and no immediate plans to start saving.

Women are least likely to have moved or spread their savings, with 70 per cent of women admitting to this, compared to 67 per cent of men. What's more, those between the ages of 35 and 54 are more apathetic than their younger counterparts, with 73 per cent of 35 to 54s not moving their savings versus 70 per cent of 18 to 34 year olds.

Customers can apply for an Egg Savings Account by visiting egg.com