SIPP deposit accounts: New entries, climbers and fallers November 2012

Any hope that the recent falls in interest rates on SIPP deposit accounts were coming to an end in October, have been well and truly dashed in November, with rate cuts and product withdrawals continuing apace. The main reason behind the continuing rate cuts appears to still be the Funding for Lending Scheme (FLS), which is offering a cheaper source of finance to banks and building societies; although we are seeing more institutions confirm that their own funding position is strong, meaning they require less money from depositors. New entrie...

Savers lose £12 billion by sticking with low interest rate accounts

Billions of pounds of interest are being lost by savers who don't switch their low interest rate accounts to higher rate facilities. Low interest savings accounts prevent savers from making the most of their money. Savers are losing out on £12 billion a year by keeping their money in savings accounts with low interest rates, according to Which? research. The consumer association found that almost half of the 12,000 accounts available on the UK market pay 0.5% interest or less - a quarter of accounts pay out a miserly 0.1%, which translates to an annual interest of just £1 for every £1000 saved. Ulster Bank’s Easy Access Savings Account and Newcastle Building Society's Nova Plus Issue 3 Account were found to pay 0.01% meaning that a saving of £1000 would provide customers with a saving of just 10 pence.