Montgomeryshire AM Mick Bates is accusing banks of cashing in on rural customers, as new research by Which? has uncovered that an online saver could be £375 better off over the course of a year compared with a branch-only saver.
The research found that the average rate for instant-access savings accounts available in-branch to be just 0.56%, less than half of that available to online savers (1.14%). Fixed-rate savings accounts and cash ISAs also offered a much better range of best-rate products for online savers.
Commenting on the research, Mr Bates said:
“This research by Which? suggests that Montgomeryshire is being dealt a double whammy as banks are cashing in on rural customers. Not only are banks which were bailed out by the taxpayer now cutting service hours in our local branches, but customers in rural areas who may have little or no access to the Internet get lower rates than online customers.
“A report by Consumer Focus in 2009 entitled ‘Logged in or Locked Out’ showed that only 62% of people in Mid Wales personally use the internet, which is lower than anywhere else in Wales. In rural Wales we also have a higher than average proportion of elderly people and according to the report only a quarter of people over 65 use the internet. It is also the elderly and vulnerable who are most disadvantaged by the service cuts to our local branches as they are less able to travel long distances to access a service elsewhere.
“Banks are clearly offering a raw deal to customers in rural areas, which is unacceptable. Reducing service hours as well as preventing customers with no internet access or who do not feel comfortable using internet banking from accessing the best deals is simply unfair and definitely not helpful banking!
“I have long campaigned for better broadband for rural areas and I hope that the Welsh Government will up its action as a result of this research, to improve financial equality for people in rural Wales.
“It is time for the banks to end the empty promises and restore some real commitment to customers. They must increase the service in our local rural communities, as well as offer customers the chance to access the internet in their local branch, so that they do not miss out on the best deals which currently mean that they could be hundreds of pounds worse off simply because of where they live.”
