Savers Call For Banks To Simplify Their Products, As Two-Thirds Say There Are Too Many Gimmicks

77 per cent of UK savers say banks should make savings accounts easier to understand
63 per cent of those surveyed believe that there are too many gimmicks in the savings market and many are confused by the number of savings products available
59 per cent want banks to guarantee to pay new and existing customers the same

LONDON, June 27, 2018 – 77 per cent of UK savers say banks should make savings accounts easier to understand, according to new research from Ford Money, the UK savings bank from Ford Motor Company’s financial services business Ford Credit.

The research, commissioned among UK savers, suggests that many perceive savings products as being too complex, revealing that:

63 per cent feel there are too many gimmicks, with many accounts offering features such as bonus rates which expire after a set period of time
57 per cent are overwhelmed by the number of savings products available
47 per cent stating that they don’t know what Open Banking is¹, potentially creating more confusion

As a consequence of this confusion, 7 per cent of savers with fixed-rate accounts have been charged a withdrawal fee they didn’t know they would incur. While most fixed-rate accounts typically charge savers a fee if they withdraw money before the product matures, this condition should be better explained to savers when they open the account.

“The complexity of the savings market means that, through no fault of their own, many savers may not be managing their money as effectively as they could be. It is crucial that banks make their products easy to understand and use so that savers can make the most of their money,” said Suzanne Lewsley, Ford Money’s chief deposits officer.

When asking savers how products could be improved, the research found that:

59 per cent want banks to guarantee to pay new and existing customers the same interest rate
44 per cent want fewer terms and conditions
40 per cent want banks to reduce the variety of accounts available

In addition, 92 per cent of savers agreed that savings accounts should pay fair and consistent rates, while 83 per cent said banks should more clearly communicate how their savings accounts work and the interest rate they pay.

More than a quarter (28 per cent) of savers don’t know the interest rate offered by their savings account and said they do not regularly keep track of it.

“While many banks are clamouring to offer the best interest rate to attract new customers, most savers are more interested in taking out a fair and consistent product that is straightforward to use. Our savings products are built around our customers’ needs, offering fair and consistent rates,” Suzanne added.

“Although some banks give new customers preferential treatment, the Ford Money Our Best Rate Guarantee means that we pay new and existing customers the same interest rate on variable rate products. We would never want existing customers to feel like they are being penalised for their loyalty.”

Since its launch in April 2017, Ford Money has been shortlisted for a number of consumer money awards, underlining its commitment to delivering a fair and consistent service for savers.

Most recently, Ford Money was ‘Highly Commended’ in the ‘Best Savings Provider for Large Deposits’ category at the 2018 Moneywise Customer Service Awards. Ford Money also was named Best New Savings Provider in January at the Moneynet Personal Finance Awards 2018.

Ford Money services are available online at www.fordmoney.co.uk and include a range of savings products and ISAs.

Deposits of up to £85,000 are protected by the UK government’s Financial Services Compensation Scheme (FSCS).

Notes to editors

All figures, unless otherwise stated, are from a survey by Opinium, commissioned by Ford Money. Total sample size was 1,635 UK savers. Fieldwork was undertaken between 1 - 4 June 2018. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).

¹Open Banking is designed to help financial services customers securely share their financial data with other financial institutions. Benefits include more easily transferring funds and comparing product offerings.

About Ford Motor Credit Company

Ford Motor Credit Company is a leading automotive financial services company. It provides dealer and customer financing to support the sale of Ford Motor Company products around the world, including through Lincoln Automotive Financial Services in the United States, Canada and China. FCE Bank is a subsidiary of Ford Credit, which is a subsidiary of Ford. For more information, visit www.fordcredit.com or www.lincolnafs.com.

About Ford Money

As part of Ford Credit Europe (licensed as FCE Bank plc), Ford Money is a new savings provider in the UK. FCE is a registered bank in the UK, authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and PRA to accept deposits. Deposits of up to £85,000 are protected by the UK government’s Financial Services Compensation Scheme (FSCS). For more information, visit www.fordmoney.co.uk.

Ford Money is a trading style of FCE Bank plc. which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Number 204469. Registered in England and Wales under registration number 772784.

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Savers Call For Banks To Simplify Their Products, As Two-Thirds Say There Are Too Many Gimmicks

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