Despite the serious issue of lack of income in the current environment, and widespread belt-tightening, Saga Personal Finance has revealed that most Britons are doing little to make the most of their savings.

It found that almost two thirds of people admit they do to not even knowing the rate of interest on their accounts. The over 50s are savvier at knowing their current rates, with almost half aware of them, in contrast to over two thirds of the younger generation who have no idea what their money is making them.

Worryingly, a quarter of people only check interest rates when opening a savings account, and a further 25% check them once a year or less – at this difficult time you should be doing all you can to make sure your money is working as hard as you are.

But almost two thirds of savers are unhappy with the current rate on their account. The research shows that a massive 89% believe that having a good rate of interest is important, compared to four years ago, when less than three quarters thought so.

In this low rate environment, savings rates are not going to help you make a decent return on your money. But with offset – where a lower rate is reduced with more investment – a low rate environment means you save money every month.

You need to be acutely aware of how much you could be making on your savings right now – so talk to a mortgage adviser about switching to an offset mortgage. They will show you that as each month passes, you will see your rate drop – the best incentive to keep an eye on your money.

SOURCE: Saga, 07/09/09

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