Consumers don’t bother to put money aside for the future because of low interest rates and complicated best buy introductory offers, a financial expert has claimed.
Andrew Hagger of Moneynet.co.uk said consumers are “baffled” by the complex special offers banks use to attract new customers.
“It is no surprise that many consumers, baffled by complex accounts often riddled with restrictions, do not bother to switch their account to get better deals,” he said.
Hagger believes banks should simplify their products so it’s easy for consumers to work out which accounts offer the best interest rate in the long-term.
“The financial services industry needs to move away from short-term, best buy initiatives to satisfy internal marketing targets and start putting itself in the customer’s shoes,” he explained.
However, Kevin Mountford of Moneysupermarket said simplifying bank accounts won’t be enough to get lazy Brits into the habit of saving.
“Simplicity isn’t a magic bullet,” he said.
“There is an underlying problem in Britain where people do not save enough, despite the Government trying to encourage saving by giving tax breaks.
“Consumers need more incentive to save other than simply understanding a product.”