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Comparison website ‘misleading’ savers into buying low rates

They compared four major comparison websites, as part of the investigation and found its rivals offered far more choices. Savers who took these inferior “best buys” could lose up to £500 a year in lost interest, according to the programme. 

This figure comprises interest that savers would forgo if they put £1,000 into an easy-access account, £10,000 into an Isa, £8,000 into a 3-year bond and £7,000 into a notice account according to the sites recommendations, compared with the best deals for each product. The savings section has now been removed from the website 

The first comparison site started in 2002, introducing the model whereby firms pay for their products to be included in online best-buy tables. These sites have since become household names, and are widely used to compare financial products such as car insurance and energy suppliers. 

Comparison websites typically have a commercial link with the products they advertises, for example the comparison website may receive a commission every time a user clicks through to a bank or building society’s product website. 

Investors are lulled into a false sense of security by expecting impartial information to be supplied for them to get the best deal.  Whilst quite often people are satisfied with the outcome, there is no ongoing support and advice after. This is where Blacktower can help you.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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