People who insist on a passbook with their savings accounts receive lower rates of interest, research shows.
The study, conducted by MoneyExpert.com, found that passbook savings account paid an average of 0.5 per cent less interest.
Sean Gardner, chief executive of MoneyExpert.com, said: "Many savers like and value the security and certainty offered by a passbook with their savings account .
"However there is a cost for banks and building societies in providing passbooks and it is savers who are paying the price."
Mr Gardner added that anyone who insisted on a passbook with their savings account must make sure that they are on the best deal they could be.
Around 83 per cent of savings accounts offering passbooks pay less interest than the Bank of England base rate, he concluded.
On Monday Jason Clarke of Halifax said that online savings account offered good rates of interest as they cost banks less to administer.
Savings accounts with passbook offer less interest
Savings accounts with passbook offer less interest
Wed, 13 Feb 2008
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