Surge in saving accounts paying poor rates

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Tens of thousands of savers are receiving 0.4% return after tax or less following a rise in accounts paying derisory rates.

Research from Which? revealed the number of accounts paying these low rates has increased by nearly two-thirds in the past 12 months, according to the Daily Mail. The rise is the result of banks and building societies launching a string of accounts with headline-grabbing rates of 2.4% after tax (3 % before) or more. Meanwhile, they close existing accounts to new savers and the rate drops sharply. Which? researched 1,727 savings accounts that have been superseded by newer versions to find 546 paid 0.4% or less, 341 more than last year. Of these, 307 pay 0.08% or less - up by more th...

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