Thursday, 20 August 2009

Small change blindness

Here’s a quick question. If someone was serving you at a counter, disappeared for a few seconds and a different person came back and continued serving you, you’d notice right?


Or at least wrong for about 75% of us, who fall victim to something psychologists call Change Blindness.

How many changes in our financial world do we fail to notice?

Right before our eyes, interest rates have fallen from around 5% to 0.5%, yet have we switched provider to get the best deal around? Most current accounts now pay less than 0.1% interest whereas a year ago only about half paid such a measly amount. The banks make most of their money from existing customers who don’t bother moving their money elsewhere.

There are still some good offers around though, check them out on www. And remember that loyalty rarely pays in personal finance.

More about change blindness in this youtube clip.

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