Today the Government will announce plans on how it will force energy companies to offer customers their lowest tariff. This is following last month’s announcement from Ofgem that proposed to force energy companies to, not only inform customers of their lowest tariffs, but also, for some potentially, tell them about the lowest tariff they can get from the whole market.
This got us thinking that the same simple policy could work wonders for savers too. At a time when interest rates are at rock bottom, with many savers seeing little incentive to save, the majority of the banks and building societies do little to help. Many savers find themselves languishing in poor paying accounts, in some cases after just 12 months, and often they simply don’t realise it.
Campaigners have, for some time, been pushing for basic information such as interest rates to be clearly displayed for customers rather than lost in reams of rate information. As a bare minimum, the rate being earned should be prominent on the annual statement; as yet this is only compulsory on ISA statements. Why is this not rolled out for all accounts?
Better still, as is happening in the energy industry, savers should be told about the providers’ best like for like savings rate. As Ofgem is pushing for clearer information on energy bills, why can’t savers also have this basic information to better inform them of how their savings account compares.
We launched savingschampion.co.uk because this basic information can be hard to find. For savers to truly know how competitive the rate they are getting is, they need to compare it with the whole market and keep an eye on their rates in the future. When every penny counts why is the Government not doing everything possible to encourage people to save and keep saving?