Savers are not moneywise despite hard times

Despite the fact that this is one of the most difficult financial periods in recent times, many consumers are still failing to manage their money properly, a new study has revealed.

Bills, birthdays and household chores rank far higher than checking rates applied to savings accounts on the list of priorities for many homeowners, according to research commissioned by Chelsea Building Society.

The poll, which asked consumers to list the most important tasks in their day-to-day life, found that four in five (81 per cent) people with less than £5,000 in their savings accounts do not manage or check savings rates on a daily basis.

Even those with substantial amounts of savings are failing to keep an eye on their finances because two in five (38 per cent) of those with more than £50,000 admitted that checking rates was not an important day-to-day task.

Nine in ten (90 per cent) of those polled admitted that keeping an eye on their accounts was the very last thing they would tackle after tasks such as making social arrangements, house cleaning and laundry.

In a bid to help consumers improve their finances by encouraging them to opt for accounts that better meet their needs, Chelsea has launched its 'Refreshingly Traditional' range of savings accounts.

Research by the company revealed that 66 per cent of consumers prefer simple, transparent products, which are viewed as vital for financial security, with easy access to savings and good quality personal service ranking high among essential requirements.

"More than ever customers want their savings to deliver what they need," commented Jenny Hudd, savings product manager at Chelsea Building Society, who added: "Today's lifestyles mean that people are hard pressed to monitor rates and manage their finances on a day-to-day basis."

"We are committed to offering competitive rates and personal service across our range, and are seeking to encourage people to choose the right account for their needs," she stated.

The launch came as new research from uSwitch.com revealed that savings rates are being slashed across the board, with 27 accounts having their rates reduced by as much as three per cent in the last month alone.

According to the company, last month saw Lloyds TSB slash its Monthly Saver account rate by three per cent as its one-year fixed rate investment savings account rate dropped by one per cent.

Egg cut the bonus rate on its Internet Savings Account (ISA) by 0.75 per cent, as the Bank of Scotland's Instant Access Savings Account Reward was dropped by up to 0.35 per cent.

RBS and NatWest have not been left behind because rates on their cash ISA range were reduced by up to 0.25 per cent, while Nationwide's fixed rate bond range also had its rates cut by up to 0.5 per cent.