Intelligent Finance hopes these new figures, which show that sorting out finances could prove a far bigger money spinner than the next pay round, will help drive home to consumers the benefits of shopping around for more competitive banking deals.
With average wage rises across the public and private sectors running at just 3% per annum according to the IRS pay databank, for some, simply rearranging finances could be worth almost double this year’s pay rise.
Commenting Grenville Turner, Chief Executive, Intelligent Finance said: "Consumers are getting savvier about their finances, but far too many people are still losing hundreds of pounds a year from uncompetitive deals. We need to make people think differently about the costs of not shopping around for their day-to-day banking products. I hope these figures — which suggest that many people could get almost double this year’s rise in take home pay simply by rearranging their finances — will make more people look afresh at their banking arrangements."
The UK average yearly wage currently stands at £25,134. As a substantial chunk of this pay package goes to the taxman for income tax and national insurance contributions, people are left with £18,600.
Intelligent Finance looked at an individual being paid this wage whose wider financial picture was also in line with UK averages. The interest paid and received by the person on these products was then compared to their position should they move their banking products to more competitive deals.
It emerged that an individual getting average industry rates on average mortgage, savings, current account, credit card and loan balances would be over £1000 better off per annum by moving to a competitive provider .
