Bank customers are becoming increasingly frustrated with misleading promotional rates according to a new survey. 83 per cent of respondants stated that it's misleading for a bank to give a good introductory offer only for the benefits to be withdrawn after the introductory period has expired. The survey, carried out by Amarach Research for Rabodirect, focused on 25 – 45 year olds who bank online.

Results also showed that people are now paying little attention to these promotional rates and instead focus on factors such as easy access to their money, interest rates and the safety of the bank behind the product.

30 per cent of those surveyed said that the rate offered was the most important feature for savings products. The terms and conditions was the next most important, followed by access and the ability to manage the account online. Results showed that attitudes to online banking are positive with 65 per cent of consumers now viewing online banking as very safe and 43 per cent of respondants said that they were now more comfortable with online banking than they were a year ago.

Attitudes to saving showed a cautious approach with 65 per cent saying that they would avoid longer term savings options in favour of easy access products. The uncertain economic climate has also created more risk-averse saver with 68 per cent of those surveyed saying they would favour safer investments with lower returns rather than riskier ones with higher returns.

Speaking about the reaction to misleading rates, General Manager of RaboDirect, Roel van Veggel, admitted that these practices are potentially damaging to financial institutions and called for more transparency on Ireland's banking sector.

"In the Irish market we see that, on face value, many banks offer fantastic promotional rates. But if you examine all the terms and conditions behind those rates, you quickly see they're actually not so fantastic.

"I don't believe these promotional rates are in the long term interests of the consumer, and they do nothing to bring much needed transparency to Ireland's banking sector. He also called on the financial regulator to address this lack of transparency in advertising of savings accounts and banking products in general.

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