SUE’S GUIDE TO Stopping Banks Taking Advantage
How old are you? Sounds like a rude question, but I’ve a reason for asking! If you’re 61, you could be your bank’s most lucrative customer.
The financial services regulator, the Financial Conduct Authority, reckons at this age you’ll typically have £33,000 sitting in your current account and £17,000 in savings.
Most current accounts don’t pay interest so it means banks can make money loaning out your cash in the form of loans and mortgages while you earn nothing!
Next most lucrative customers are those in their late 30s. They’ve got lower bank balances – typically under £800 – but boost the bank’s coffers with overdraft charges!
So why not make sure it’s you making money and not just your bank?
Check if you’re getting banking benefits like interest, cashback or even a reward bonus each month. If not, it could be time to consider switching banks. This can mean a better deal, along with a switching incentive in the form of free cash up to £150. Switching is easy thanks to the banks’ current account switch ser vice, which means your new bank will move ever ything over for you.
Or why not drip-feed some money from your current account into a monthly saver account to earn up to 5% interest? If you’re worried about tying up your cash, you can still earn 1.5% interest with the new Marcus instant access account from Goldman Sachs.