Savers issued new warning as closed accounts cost Brits £139 in 'loyalty tax'
Brits are being urged to check their savings pots as closed accounts risk losses from a "loyalty tax", new analysis shows. Moneyfacts found that £20,000 left in a closed easy access savings<bos> account made £139 less in interest when compared with an active account, with an average difference of 0.22%.
TL;DR
- Closed savings accounts may be costing savers money through a "loyalty tax".
- Analysis shows a £20,000 balance in a closed easy access account earned £139 less interest than an active one.
- Savers have missed out on potential 4% interest rates over the last three years by not shopping around.
- About 43% of savings accounts do not pay more than the Bank of England's base rate.
- Over £306 billion is currently in UK current and savings accounts earning no interest.
- Inflation has risen, and energy prices are expected to increase further, impacting the cost of living.
- The UK's unemployment rate has fallen, and the economy showed slight growth, indicating resilience.