CROWDSTACKER is set to launch a savings account switching service that promises to end the “loyalty penalty” by automatically moving cash to get better interest rates.
The peer-to-peer lender has unveiled a new service called Kepe that will move a user’s money across a panel of partner banks offering competitive rates across a range of easy access, notice, fixed term and cash ISA products.
Research by Kepe found that despite 19 per cent of savers saying they are confident they are getting the best interest rate on their savings, 66 per cent were unlikely to bother switching.
“There are several issues with the savings market at the moment, not least the loyalty penalty which is unfavourable to people who don’t actively manage their cash savings,” Karteek Patel (pictured), chief executive of Crowdstacker, said.
“People’s apparent unwillingness to switch accounts as one of the main reasons why they are losing money on their cash savings and cash ISAs.
“This customer inertia is due to misplaced brand loyalty, and probably confusion caused by multiple product offerings and unclear communications.
“Kepe tackles all of these issues by automating the process of switching accounts so that money is never left in an account paying a lower rate of return than is otherwise available to each particular saver.”
It comes after Crowdstacker announced it had appointed James Blower, of The Savings Guru, to help launch a “game-changing” product.
Users can register for the service on the Crowdstacker website.