Apathy is a key reason why many people don't move their savings accounts to try to get better interest rates.
The basics of good financial planning are not sexy - it's about the accumulation of small improvements such as regular budgeting, changing everyday expenses to get better deals and reviewing savings to get better rates.
Everyone needs access to their money for everyday needs and to provide emergency funding in case of unexpected expenditure. But many people might keep too much on easy access, so preventing some money from being invested where it could earn better rates. As a rule, about 3 to 6 months worth of annual salary can be kept within easy access. The rest should be invested elsewhere to give better growth.
The measures come after the FCA conducted a study into the savings market which found that 80 per cent of easy-access accounts had not been switched in the last three years, despite the fact that in may cases, customers receive less than the Bank of England’s 0.5 per cent base rate. Christopher Woolard, Director of Strategy and Competition at the FCA, said: “With many savers never switching because they don’t think it will make a difference, our rules will help consumers get the information they need to shop around. In a good market, providers should be competing to offer the best possible deal and should a consumer wish to move accounts, they should be able to do so with the minimum of fuss.”