The FSA is urging consumers, particularly the young, elderly and low income earners, to learn a less...
The FSA is urging consumers, particularly the young, elderly and low income earners, to learn a lesson from the Scots and shop around for financial products, claiming that by doing so investors could save hundreds of pounds a year.
According to research carried out by the regulatory authority, consumers could save up to £700 by comparing prices on financial products and services such as current accounts, mortgages, credit cards and personal loans.
"It's not just people with money to spare that can make savings," says Howard Davies, FSA chairman.
"We can all benefit by shopping around, particularly the young, the elderly, and those on low incomes. These groups tend to get worse rates of return. Let's all take a lesson from the Scots because, as the research shows, they tend to get the best rates of return on their savings accounts while Londoners get the worst."
The research found that four out of ten consumers think there is little difference between the costs and charges of different companies. But an FSA report, Losing Interest? How much consumers can save by shopping around, shows the savings that could be made by going to the least expensive provider. The Authority calculates £26 could be saved on current accounts; £117 on Savings accounts; £230 on mortgages; £137 on credit cards; and £116 on personal loans.
However, Davies cautiously notes: "We are not saying that cheapest is necessarily best".
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