Savers switch accounts in the hunt for higher interest rates

UK savers are voting with their feet and changing accounts in large numbers in the hunt for higher interest rates. There was a reported 317 per cent increase in the switching of accounts in the last three months of 2022.

This accounts for a total of £73.5 billion being put into new savings accounts and dwarfs the total placed in accounts in 2021, which amounted to only £17.6 billion.

With many High Street banks offering below one per cent rates on savings, people have looked to building societies and Challenger banks for higher rates.

However, there are some important factors to consider when switching accounts. First and foremost, savers should ensure that they are aware of any fees or charges associated with their current account or the account they plan to switch to.

Banks may charge fees for opening or maintaining an account or may impose penalties for the early withdrawal of funds.

Additionally, savers should check the terms and conditions of the new account to ensure that the interest rate offered is not just an introductory rate that will expire after a certain period.