UK savers losing out on hundreds of pounds each year because of this mistake
Martin Lewis warns 21-year-olds are missing out on share of £1.6bn savings
Millions of Britons are losing money to inflation, with £612.4 billion held in savings accounts paying 3 per cent interest or less, while inflation stands at 3.3 per cent.
Many high street banks offer significantly lower interest rates, often between one and two per cent, leading to a ‘loyalty penalty’ for savers who do not switch accounts.
Savers with £10,000 in a one per cent account could miss out on over £280 annually compared to more competitive easy-access deals.
Experts advise savers to check their current interest rates and shop around for better deals, as easy-access accounts paying over four per cent are available.
The long-term impact of inflation on savings is often underestimated, eroding purchasing power even if the cash balance appears to grow.
