One in five never shop around for the best deals before selecting a new ISA
New research suggests that banking customers in the UK are not doing enough research before setting up new savings accounts and ISAs or applying for loans with financial services providers. The research, commissioned by the global online reviews platform Trustpilot means these customers could be missing out on better deals elsewhere.
The poll, which surveyed UK adults on their attitudes toward savings accounts, ISAs and loans (including personal loans, overdrafts and credit cards), found that 43% of people feel they should be doing more research before setting up a new ISA or savings account, and one in five (19%) admit to never shopping around for the best deals before setting one up. Of those polled, 37% say they generally stick with their existing current account provider.
The trend is echoed when it comes to borrowing. 39% say they should be doing more research before setting up a new loan, with 19% of people saying they never shop around for the best deals, and 28% saying they tend to stick with their existing current account provider.
More worryingly still, more than a quarter of people (28%) say they have little understanding of which providers offer the best deals on ISAs and savings accounts, with 22% saying they trust their existing financial services provider to give them the best possible deal. A quarter (25%) say the same about their understanding of which loan providers offer the best deals, with 23% simply trusting their existing provider.
The research also reveals that almost a third (32%) say researching new savings accounts or ISAs is too time consuming, while 31% say the same for loans.
However, the findings also show that online reviews are an important factor in helping consumers make informed decisions before selecting a new financial product. Almost half of respondents (48%) said they check online reviews when researching ISAs and savings accounts, and an equal proportion said the same for loans.
James Westlake, UK VP at Trustpilot comments “As our research highlights, people aren’t investing enough time into researching new financial products, such as ISAs, meaning they could be losing out, by not taking advantage of better deals elsewhere. While it can seem time-consuming and overwhelming to compare the many different financial services providers, there is a huge wealth of useful information available on the internet, and particularly on review platforms. Online reviews provide a great source of insight as they come from people who’ve used the provider previously and thus have first-hand experience of it. These will allow customers to make informed decisions.”
Jeanine Buckley, a 32 year old senior recruitment consultant based in Kent, recently set up a Help to Buy ISA with Santander. She comments “I’m currently saving for a mortgage deposit, and a Help to Buy ISA seemed like a good way to help me do this. However, due to time restrictions of a busy lifestyle and the large amount of offers available I didn’t spend much time researching different providers or the rates they offered. I wanted to get this set up as quickly as possible, so I simply stuck with my existing bank as it would be easier to set up. I honestly have no idea if I’m getting the best rate.”
Key points again
- 43% of people feel they should be doing more research before setting up a new ISA or savings account, with 37% saying they generally stick with their existing current account provider
- Almost a third (32%) say researching new savings accounts or ISAs is too time consuming
- Almost half of respondents (48%) say they check online reviews when researching ISAs and savings accounts
- Research comes ahead of the ISA investment deadline on April 5th and follows announcements in the recent Budget that the ISA allowance will rise to £20,000 next year