People who believe they are getting a good return on their savings are being urged to make sure, following an increase in "zombie accounts".
The so-called savings accounts are launched with high interest rates and are used by lenders to attract customers. However, according to a report by the Guardian, these attractive offers are often closed to new customers within a short period and after a time the interest rate will be cut.
Consumer magazine Which? has called on consumers to be wary of so-called zombie accounts and ensure that their money is always in accounts paying the highest available rates of interest.
Dominic Lindley, Which? policy adviser, said: "A lot more banks [and building societies] are launching savings accounts and then 'obseleting' them within a few months. They make little effort to let customers know about the better-paying accounts."
Which? claims there are now in excess of 1,200 such accounts in the UK, and while some superseded accounts continue to pay a competitive rate of interest, almost half were found to pay 0.5% or less. Most offer an annual return of just 0.1%, highlighting the need for customers to shop around and secure the latest deals.