End this ‘spiral of misery’ – find a better deal

ers will need to summarise key information in letters to customers – in a way that helps them to compare accounts – and include reminders about forthcoming rate changes.

HOW TO GET A BETTER RATE

LOOK at challenger banks, the name given to smaller banks trying to take business from bigger rivals. Many – including RCI Bank, Charter Savings Bank and Virgin Money – top the charts for savings.

But if their accounts become too popular they will not be available for long. RCI Bank savings are protected by the French version of our State-backed protection scheme, guaranteeing £75,000 per person, per firm.

SavingsChampion’s free ‘rate tracker’ service alerts customers when there is an account that beats their current deal.

Anyone with £100,000 or more in savings could consider the company’s ‘concierge’ service, which takes on all the hassle of switching accounts. There is a one-off fee of 0.1 per cent to set up, followed by a 0.2 per cent annual fee.

Many current accounts are also winners for savings rates. But they require minimum sums to be paid in each month and at least two direct debits paid out for bills. Fees might also apply.

Be aware that most interest rates on current accounts are variable, and therefore subject to change.

People who are reluctant to switch – or fear it is too much trouble – should at least contact their existing provider to see if it can secure them a better rate from a different account.