Check your savings rates as bonus deals always come to an end

A recent poll from moneysupermarket.com showed that just one in three consumers (30 per cent) check the rate on their savings account on a monthly basis, meaning a huge proportion of the British public may have money languishing in accounts with an uncompetitive rate of interest.

Whilst 40 per cent of Brits check their savings rates once a year or less, over ten per cent of poll respondents couldn't remember the last time they checked their savings rate. Even more surprising, almost nine per cent admitted to never having checked their rates, meaning they could have had their savings in a poor rate account for years and are failing to make the most of their money.

The current average interest rate of the top ten easy access saving accounts from May 2010 is now only 1.55 per cent, far below the current leading rate of 3.05 per cent offered by Nationwide's MySave Online Plus account. Furthermore, not a single one of last year's accounts would be classed as a ‘best buy' when compared to the current market leading easy access accounts. With the average easy access saving rate for the entire market being just 0.30 per cent^, the vast majority of savers will be sat on a rate far lower.

For example, a customer with £10,000 sitting in the market leading account from 12 months ago, the Direct Bonus Account from West Bromwich BS, could earn themselves an extra £105 over the course of a year by switching to Nationwide's current table topping offering.

Kevin Mountford, head of banking at moneysupermarket.com said: "The most competitive savings accounts tend to offer customers a bonus rate when they sign up, but the majority of these will have a limited lifespan, so keeping an eye on how much interest savings are generating is extremely important. The UK public are being hit by high inflation and a record low base rate, so ensuring they are doing everything to limit the effects of the squeeze on their savings pots is crucial, and bonus rates are a perfect way to do this.

"Bonus rates on savings accounts are a good thing at a time when base rate is low as it means savers can take advantage of top interest rates which are at least six times that of base rate. However, there is no point getting the best deal in the market only to subsequently let your savings sit idle for years on end earning a pittance. By being proactive and keeping an eye on your rate will benefit in the longer term.

"Savers need to take ownership of checking their accounts by reading statements clearly, or using their initiative to call their banks and enquire about their rates. A five minute phone call to their bank could potentially earn them an absolute packet over the course of a year if they swap to a higher paying account - it could be the most important phone call they make this year."

For more information, visit moneysupermarket.com.