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Tuesday, 26 October 2010

Which? and your savings accounts.

Back on 10th July, I wrote about Hoarders and Wasters.

Now Which? has confirmed one of my suspicions. There are no less than 1200 different "Savings" accounts available from British banks and building societies. If "savers" switched their money from some of the low interest accounts to some of the higher interest ones, they would gain an estimated £12 billion a year. Instead, they are getting a rate of return on their "savings" which is below the rate of inflation. Good news for banks.

But Which? makes a mistake. It assumes that all this money is being "saved". That's not true. It's simply not being spent and that's a different activity. Some people are too mean, too lazy, too happy or too sick to spend. They may also be too mean, too lazy, too happy or too sick to save properly.

Take my free advice. Don't save. Then you don't have to read Which? reports on best value for money Savings accounts.

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