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Rise of the rate-dead zombies

Rise of the rate-dead zombies

It has been reported that 80% of savings accounts are zombie accounts earning rates often as low as 0.1%.

Published on 2 January 2014

According to shocking recent reports 4 out of 5 savings accounts in operation in the UK are "zombies".

So called because they are shut to new business and pay a life-sucking low rate of interest.

Leaving millions of people in the UK worse off as their earnings are eaten away at an alarming rate when compared to inflation.

How to tell if you are affected

To help, RateSetter have created a simple 3 point questionnaire. Simply answer the following questions to determine your risk.

Question 1: What is the current rate of inflation?

A) 2.1%

B) 2.7%

C) 3.2%

Question 2: When did you last check the rate of interest your bank is paying you on your savings?

A) 0-4 Months

B) 4-10 Months

C) 11 months +

Question 3: What’s your rate?

A) 3% +

B) 1-2%

C) 0 – 1%

The Scores:

How did you do?

Mostly A’s - You have nothing to fear from zombies. Stay alert but be sure to share these simple checks with friends and family who might be more susceptible. Simply email the link or share using the social buttons to the right!

Mostly B’s – There is a significant chance of zombie infection albeit mild and easily treatable if you act now and move your money to a high interest account. In the time since you last checked your rate it could easily have dropped. Some of the best rates out there are temporary rates and will simply switch to well below inflation after a set time period. Once they drop, you have a zombie account. Also the rate of inflation changes quarterly which has a significant effect of your real earnings.

Mostly C’s – If you haven’t checked your rate in 11 months or over there is a serious risk you have a zombie account. Even if your rate started off high many accounts lure you in with so called “teaser rates” which drop dramatically after the promotional period leaving your money earning a pitiful return. The inflation rate has also changed dramatically in that time which has a fundamental effect on the real worth of your savings. You need to seek out a high interest cure immediately. If you have a rate between 0-1% this is one of the worst accounts on the market and you could be losing hundreds of pounds every year.

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