Simon Read: It's simple - banks streamline their accounts and we suffer
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.I'm pleased that so many banks and building societies have been cleaning up their ridiculously large and confusing savings ranges.
Since 2013, 13 providers – including Lloyds, Barclays, Santander and NatWest – have simplified parts of their savings ranges and a massive 711 accounts have been reduced to just 114. The Halifax, for instance, recently scrapped 51 old accounts and replaced them with just three.
But, as you'd expect with banks, a little bit of good news comes with a healthy dollop of bad. As part of the process of cutting down the number of confusing accounts, banks have moved many people on to lower interest rates.
"Thousands of existing savings accounts have been reduced in recent years and now, under the guise of simplification, more accounts are being moved over to lower-paying versions," warned Susan Hannums of Savingschampion.co.uk.
The average rate cut has been 0.51 per cent, though some lucky people have actually been moved into higher-paying accounts and ended up getting 0.58 per cent more on their savings. Lucky them.
For the rest of us unfortunates it's yet another example of the trickery that banks still feel compelled to resort to. They have had a chance to make accounts fairer but instead have chosen to make things worse for most of us.
s.read@independent.co.uk
twitter: @simonnread
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments