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News: Banks 'not informing savers of rate changes' News: Banks 'not informing savers of rate changes'

Banks 'not informing savers of rate changes'

Thu 29 Jul 2010 - Published in Banking

Banks 'not informing savers of rate changes'

An investigation by consumer group Which? has found that many savings providers are not being open with their customers about interest rate changes.

According to research by the organisation, just four out of 12 banks and building societies it examined have a policy of guaranteeing that their customers are told their savings rate has changed.

The study found that only Cheltenham & Gloucester, First Direct, Co-op and ING Direct insist on personally notifying their customers by letter or email.

However, the other savings providers tend to rely on adverts or people coming into their branches and only contact them directly if the change is more than 0.25 per cent or amounts to more than 0.5 per cent over 12 months.

Which? chief executive Peter Vicary-Smith commented: "Our rigorous research shows that outdated and inconvenient methods of notice on interest rate changes are keeping savers in the dark for longer, at a time when they need greater disclosure than ever before."

Recent research from price comparison website moneysupermarket.com found that 36 per cent of people have never checked the interest they are receiving on their savings.