Savers have been warned that their inaction could cost them £1,222 a year. Experts at Hargreaves Lansdown have urged people to find out if they can get a better rate by switching to another provider, as it could prove to be a costly mistake.

The investment group highlighted that when considering the richest 20% of households, who have around £36,276 in cash, if they stuck to a major bank rather than opting for the highest rate on the market, they would lose £1,222. one year.

One in three savers have not changed their account in the last five years, reveals a survey commissioned by the firm.

Sarah Coles, head of personal finance, commented: “Despite all the changes in rates, three in five savers have not changed their savings in the past year and almost a third have not changed over the past year. over the last five years.

“The very notion of change is irrelevant to millions of people. Nearly a quarter of savers have never changed their savings and two fifths have no plans to change at any point in the future. “

Ms Coles highlighted the case of older Britons, saying it is “particularly worrying” that 44 per cent of people aged 55 and over have no intention of switching providers in the future.

This is despite the fact that the conventional wisdom is that once you retire, you should have one to three years of emergency savings.

The fall interest rate This has also deterred people looking to switch providers, as 60 per cent have not switched in the past year, compared to 53 per cent six months ago.

The Bank of England cut the base rate in August from 5.25 per cent to 5 per cent, where it has remained in recent decisions since, with many providers subsequently cutting their rates.

For those looking to switch, they may want to consider earning some free money in the process, as several banks offer switching deals.

Santander recently launched a £150 offer when opening a current account with them, while other banks are also offering switching deals including Barclays, Lloyds Bank and NatWest.

Amy Knight, personal finance expert at NerdWallet United Kingdomsaid banks could deploy more of these cash incentives as high rates persist.

She commented: “The spending announced in the Labor budget could force the Bank of England to cut interest rates more cautiously to keep inflation in check.

“Higher rates dampen borrowing demand and, with fewer people seeking loans, we may well see banks using cash bonuses to attract new customers, increasing deposits instead.”