LOYAL customers are losing out by more than £870 by sticking with their mortgage, savings, insurance and energy providers, according to new research.

The survey comes as banks have stooped to new lows in their efforts to manipulate rate cuts at the expense of customers. Lloyds TSB, Royal Bank of Scotland and Nationwide have all cut rates on accounts that are closed to new business by more than February’s cut in Bank rate. Deals that are still attracting new customers, however, have only gone down in line with Bank rate.

Loyal mortgage customers who are still on their lenders’ standard variable rate (SVR) after coming to the end of their fixed or discounted deal, are also being punished by not receiving the full Bank rate cut.

Insurance firms use similar tactics by offering huge discounts for the first year before demanding renewal fees that can easily double premiums.

“It’s always worth reviewing your finances regularly,” said Kevin Mountford of Moneysupermarket, the comparison firm.

“Banks and building societies are keen to attract more retail customers to build up cash reserves. To do this they are penalising existing customers who may not notice, while enticing new customers with top rates,” he said.

Here we look at some of the ways in which loyal customers lose out.

SAVINGS

Following the quarter-point cut in Bank rate in February, Lloyds TSB decreased its savings rates for closed accounts – those no longer available to new customers – by an average of 0.34 percentage points, according to analysis by Moneysupermarket.

The biggest cut was on its 90-Day Notice Account which was slashed by 0.5 percentage points to 3.05% on balances of £50,000 or more.

Over the course of the year, a loyal customer who decided to stick with the bank would lose out on £62.51 on their £50,000 balance as a result of Lloyds’ move.

Even if you want to dump the bank and switch to a better-paying account, you will have to wait for 90 days or lose as many days worth of interest – on savings of £50,000, that’s £381.

In contrast, the average rate cut for Lloyds accounts still open to new customers was in line with the fall in Bank rate.

Royal Bank of Scotland and Nationwide have also cut closed account rates by more than Bank rate with an average reduction of 0.29 percentage points.

RBS’s steepest cut was on its 30-day savings account where the rate fell by 0.35 points to 2.25%, while Nationwide reduced rates on its Bonus 30 account by 0.36 percentage points to 3.82%.

MORTGAGES

Britannia building society rewarded its loyal mortgage customers with a cut of just 0.15 percentage points in its SVR this month.

A customer with a £150,000 repayment loan over 25 years will pay £115 more than if the provider had passed on the full Bank rate cut.

Julia Harris of Moneyfacts, the comparison firm, said: “It’s always a good idea to ask your existing lender if they can offer you a better deal.

“Some are only available to existing customers. You also avoid paying things like valuation, legal and exit fees which can add up to £600 or more.”

If you did decide to leave, a good deal is offered by Cumberland building society, which has a rate of 5.2% on its two-year fix with a £995 fee.

You would still save £1,933 a year compared with Britannia SVR, even after including all the fees.

Other mortgage lenders that have not passed on full rate cuts on their SVRs are ING Direct, which cut by only 0.15 percentage points, and Norwich and Peterborough, which reduced its mortgage by only 0.19 points.

It is also hitting customers with a double whammy by cutting savings rates by up to 0.35 points.

CAR INSURANCE

New car insurance customers are inundated with special offers. Direct Line, for example, offers a 10% discount for signing up online as well as 10% off breakdown cover. More Than offers a month’s free insurance for the first year. Some providers will also offer new customers a “golden handshake”. The Post Office, for example, offers £50 cash back to new customers while Tesco gives £50 off your shopping.

However, after signing up to a policy, your renewal rate can be 100% or more according to a Moneysupermarket survey – and that’s if you don’t make a claim.

A 57-year-old male who drives an Audi A6, and has five years’ worth of no claims, could get a quote for £285 on a new policy. However, the renewal quote with his existing insurer, Zurich, is a staggering £650 – £365 more.

Richard Mason, director of insurance at Moneysupermarket, said: “Money-savvy motorists will know there are other ways of reducing your motor-insurance premiums, by parking your vehicle in a garage, for example, but the simple action of shopping around on your renewal quote can clearly save hundreds.”

ENERGY

If you have never switched energy suppliers you will be paying as much as 25% more than you need to – about £330. Cheaper deals are offered by nonincumbent suppliers who are trying to win market share.

EDF, for example, only offers its cheap online deals outside its traditional areas of London, the southeast and southwest. Otherwise, you are likely to pay an average of 5% more.

In the northwest, the incumbent suppliers are British Gas for gas and Eon for electricity. The average bill for someone paying by cash or cheque is £656 for gas and £441 for electricity – a total of £1,097.

If the customer switched to an online Atlantic dual-fuel tariff and paid by direct debit, his or her total bill would be £759 – a saving of £338 You will also lose out if you don’t switch after a capped deal ends as you will revert back on to the supplier’s standard rate.

To make sure that you are on the best tariff in your area, use price-comparison sites such as moneysupermarket.com.

SAVER HIT BY A RATE CUT

SIMON BRENNAN, from Chester, has a Lloyds TSB Platinum Saver account which is no longer available to new customers. The rate has dropped by 0.35 points.

‘I’ve had the account for about a year and put money into it because it paid a good rate back then. I don’t see how it can now justify such a decrease given Bank rate has only dropped by 0.25 points.’

He said he is considering leaving for a better paying account. Brennan, 30, who works in sales and marketing, also has a Lloyds TSB Platinum current account as well as an Isa with the bank. However, he is also reviewing these products as his fees have increased.

He discovered last week that he will be charged £204 a year for the current account rather than £180 – a rise of 13%.