This is more prevalent in women (44%) and occurs in over half (51%) of over-55s.
Two in five also have no plans to change to a better interest rate, according to Hargreaves Lansdown’s data.
This is despite just a quarter of customers believing that the rate they have is the best deal.
As well as loyalty to their bank, 16% believe it is too much hassle to switch to a better rate with a different provider.
While having trust in their current deal is rife among many savers, there is not the same faith in the current interest rates available. Almost a fifth (17%) think rates are too low and a tenth are waiting for them to improve before transferring their funds.
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However, this approach goes against the likelihood of the future of interest rates, which are more likely to dip in the new year following a potential reduction in the Bank of England base rate, which stands at 4.75%.
Indeed, there are still “unexpected highlights” to be had in the savings market, due to increased competition among challenger banks like Trading 212 and Moneybox, Anna Bowes at Savings Champion said.
Fellow expert Sarah Coles, head of personal finance at Hargreaves Lansdown, thinks savers “are convinced it’s better the devil they know than the devil they don’t.”
Coles said: “They’re missing out on some far less devilish savings rates as a result of their reluctance to switch accounts. Two in five savers have no plans to move, and they’re still overwhelmingly holding easy-access accounts with high street giants.
“They’re driven into the unrewarding arms of the high street banks by pessimism and faulty assumptions.They’re paying a horrible price for their reluctance to switch. A move could more than triple their rate (from an average of 1.46% to as much as 4.71%).”
She added: “It’s vital to get to grips with the truth behind the most common savings myths and get back in control of your money.”
Coles pointed out five myths savers are still falling for and provided commentary on why the myths are not to be believed.
Five savings myths
1. It’s better the devil you know
Banks have to jump through all sorts of stringent hoops before they’re granted a banking licence in the UK. They need sound financing, a strong business plan and the right people in charge – and online banks are no exception.
They also have the same guarantees in place, so the first £85,000 you have with any institution is guaranteed by the Financial Services Compensation Scheme (FSCS). It means there are plenty of reasons to trust banking newcomers too.
And moving to a newer online player makes a huge difference. If you have £20,000 in savings, putting it in a competitive easy-access online account with no withdrawal restrictions paying 4.71% for a year would leave you £669 better off than putting it in an average high street branch account paying 1.46%.
2. Hassle
High street banks are cashing in on our fear of faff. We’re not staying put out of any great attachment to the bank in question, we just can’t face the hassle we suspect would be involved in doing anything else.
Shopping around has been far easier since so much of our banking moved online. First we had price comparison sites, which took the legwork out of finding a better rate.
Now we have online cash savings platforms, which allow you to open a single account, and then switch between different accounts from different banks without having to fill in any forms or prove your identity for each one. By removing the hassle, it can make it easier to take advantage of better rates.
3. Not worth it
If you haven’t checked the market lately, it’s well worth using a comparison site to see exactly what’s out there. Right now, according to Moneyfacts, you can make an average of 2.9% on easy-access savings.
There will be some people who see that the Bank of England has cut rates and assume the days of decent savings deals are already over.
This is far from the case, because despite pulling back from the peak, you can still get up to 4.71% on easy-access savings and 4.8% on accounts fixed for a year (assuming you have at least £1,000 in savings). We’d have given our right arm for these kinds of offers for more than a decade when rates were far lower.
4. Something will go wrong
More than one in 20 people (7%) don’t switch because they’re worried something will go wrong. The younger we are, the more likely we are to worry about this – it rises to 10% of those aged 18-34. Once we’ve switched once, the experience can be reassuring, so we’re prepared to do it again. The trouble is persuading people to take the plunge.
5. Rates will rise
The most competitive deals have been gradually dropping in recent months, and with more Bank of England rate cuts on the cards in 2025, we can expect them to drop further. That’s not to say there aren’t still some great deals on the market, but you’ll need to act fast while they stick around – so waiting isn’t likely to work in your favour.
