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New figures have confirmed the long-held belief that the British are more likely to get divorced than switch their bank, with married couples around three times as likely to divorce than to change bank. A new survey from Age Concern has revealed that only 16% of the British population have switched their bank after being unhappy with the service¹, while 45% of marriages now end in divorce².
 
Despite a consumer backlash over unfair bank charges, many unhappy bank customers are still failing to vote with their feet. Of those surveyed by Age Concern 1 in 5 would like to switch from their current bank if it was made easy for them.³ That’s why Age Concern is publishing its new book ‘Beat the Banks’, which offers straight-forward advice and top tips for people of all ages on how to move banks easily and much more.

Many people don’t realise how much money they could be missing out on by not switching banks to get a better deal. On current accounts alone hundreds of thousands of people are missing out on extra cash through interest each year. The book reveals the ‘big five’ banks only pay an average 0.1% interest on their current accounts in a year – so for every £1000 saved, the banks are earning  £60 and are only rewarding their customers with a meagre 80p after tax. The charity is urging people to shop around as many smaller banks and building societies offer rates between 4-6% which give a much better return.

Beat the Banks is written by money expert and Radio 4 Moneybox presenter, Paul Lewis, and makes sense of everything from savings, bank accounts, internet banking, investing and ISAs, to buying and selling shares. At only £5.99, it could be the best investment to make this year.

Author and money expert Paul Lewis, said:
‘The consumer rebellion over bank charges has made people more aware that banks are not necessarily on our side. There are many ways customers are still losing out. But a little thought and a bit of care can mean we make money rather than lose it from the many choices the banks give us. If you don’t look for the best deals you are doing yourself out of extra cash on your bank accounts, savings and investments. Beat the Banks can help you to make the most of your money and make sure it’s you not the bank who wins.’

Gordon Lishman, Director General of Age Concern, said:
‘Many people are reluctant to switch banks or move their investments because they think it will be difficult and aren’t sure how to find a better deal. Yet by doing a little research it is easy for people to make their money work harder for them. The extra cash this could bring in might make a big difference in helping to meet the rising cost of living. Our new book Beat the Banks can put the information and advice people of all ages need at their fingertips.’

Age Concerns top ten tips to beating the banks

1. Switch your current account to a bank paying 4% to 6% interest where it pays to save. The ‘Big Five’ banks only pay an average 0.1% interest for current accounts.
2. Check how much you will pay if you go into your overdraft. Some banks charge up to 20% on overdrafts that have already been agreed.
3. Pay off your debt before you even think about investing or even saving. You can never be sure of earning more by investing money than you are charged to borrow it.
4. Get rid of your old savings accounts that pay poor rates and move to new ones – instant access is best but if you can tie it up you might earn a bit more.
5. Don’t be afraid of moving to online banking – you can normally get the best interest rates with internet accounts.
6. Beware of new great deal rates that only last a year and then are stealthily withdrawn – most only last a year so stay on top of them!
7. Use several comparison websites to find the best deal on financial products. Do a search rather than looking on the best-buy list. Be sceptical and look at the deal in detail.
8. Check out National Savings and Investments products when you plan to save, especially for a fixed time. With NS&I your money is 100% safe because the government backs it.
9. Never completely close a building society account. Even if you switch accounts for better interest rates keep £100 in the account so that you’ll benefit from any windfall if it converts to a bank or is taken over by another building society.
10. If you think a charge is unfair complain and ask for it back. If you are a good customer who doesn’t break the rules you may get it refunded. If you don’t ask you don’t get!

ENDS

Notes to Editors:

1. Age Concern/ICM research February 2008. 165 of 1006 people had changed their bank because they were unhappy with the service. ICM interviewed a random sample of 1006 adults by telephone across the country between 13 and 14 February 2008.  ICM is a member of the British Polling Council and abides by its rules. Further information can be found at http://www.icmresearch.co.uk/.
2. If current divorce rates continue around 45 per cent of marriages will end in divorce, according to a new study of the expected ‘life’ of marriages published on 27th March by the Office for National Statistics (ONS) as part of its Population Trends Spring 2008.
3. Age Concern/ICM research February 2008. 204 of 1006 people interviewed said they would change from their current bank/financial provider if it was made easy to do so.

 

• Beat the Banks by Paul Lewis is available from all good bookshops or direct from the publisher (at £5.99 & £1.99 p&p) by contacting Age Concern Books on 0870 44 22 120 or  www.ageconcern.org.uk/bookshop 
• A reader/listener discount on Beat the Banks is available on request
• Copies of Beat the Banks are available for reader/listener giveaways
• For a review copy please contact Emma Hayes on 020 8765 7515
• Spokespeople available on request. Radio Producers, Age Concern England has an ISDN line facility
• Jpeg of the book cover and photos available
• Age Concern also publishes free information guides ‘Planning your retirement income’ and ‘More Money in Your Pocket’ which cover the main financial questions to consider as you approach retirement age and details on what benefits are available and how to claim. These are available free of charge from http://www.ageconcern.org.uk/ or by calling our freephone information line on 0800 00 99 66.
  

For general enquiries please contact us.

Journalists contact:

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