UK savers "missing out" on £12bn interest a year

People who open a savings account may not be aware of the options available to them when they plan to put aside their cash, a survey by Which? has found.

According to the consumer rights organisation, banks are "keeping us in the dark" over the low investment returns offered by cash deposit accounts recently.

The survey found that almost half of the savings accounts available in the UK pay 0.5 per cent interest or less – with two accounts paying as little as 0.01 per cent, or ten pence for every £1,000 saved.

Which? chief executive Peter Vicary-Smith urged savers to shop around, saying: "Banks are depriving British savers of £12 billion a year by keeping us in the dark about the pitiful interest paid on hundreds of savings accounts.

People can potentially add hundreds of pounds a year to their savings by moving their money."

Earlier this month, Darren Cook from Moneyfacts.co.uk said that banks are increasingly trying to attract savers by offering preferential interest rates.