Despite interest rates being higher than usual in the UK, some people have not taken advantage of this and have not switched savings accounts.
Research from Investec Bank revealed 14% of people did not do so because they were confused by the options available to them or worried about making a mistake.
Additionally, 11% of those who have not switched savings accounts did not as they were concerned about accounts having restrictive terms and conditions.
Another 10% were concerned if they did switch to another savings account, the interest rate would then start to fall.
The same amount of people believe rates will start to fall soon.
This news comes as Bank of England (BoE) data shows that £1trn of the nation’s savings is sitting in accounts earning less than 2%.
Charles Stanley investment analyst Rob Morgan said: “With average savings rates close to their highest level in 15 years, it’s more important than ever for savers to pay close attention to their cash.
“When interest rates were rock bottom there wasn’t much to be gained in shopping around, but today the best rates available are far higher than the worst.”
Morgan added that UK savers are not making the most of this situation, “causing them to miss out on a considerable savings boost”.
He also believes that high-street banks have failed to pass over recent interest rate rises to investors, “so there’s now billions of pounds languishing in accounts paying paltry rates compared with what can be achieved elsewhere.”
Still, almost half (46%) of people have moved savings into better paying accounts in the past 12 months, Investec Bank found.
Investec head of retail savings David Hunt said: “It’s encouraging to see that so many people have switched their savings into accounts paying better rates of interest.
“There has been increased competition in the savings market, and it really does pay to shop around to ensure you are receiving a competitive rate.
“However, people also need to ensure they understand the terms and conditions of the savings accounts they choose.
“For example, our analysis shows that of the top 50 instant access savings accounts for balances of £5,000, only 19 don’t have penalties, restrictions for withdrawing money, or rely on short-term bonuses to inflate returns.”
In order to obtain these results Investec commissioned ViewsBank to survey 1,088 people in November 2023.
