The savings market at the moment is a hotly contested arena. The credit crunch has seen institutions upping their game and launching savings products offering fantastic rates. The result being that some institutions now have in excess of 20 plus savings products to choose from.
Whilst a wide choice is a positive, the difference between the highest and lowest savings rates at some institutions is as much as 5.95%. Putting it another way, on a £2,000 balance you could be losing out on an additional £119 interest each year by choosing the wrong savings account.
At a time when banks and building societies are trying to maintain customers' loyalty, you would expect them to advise customers that they could be getting a much better savings rate. Unfortunately this doesn't always appear to be the case.
The majority of the savings accounts paying the lowest rates are branch based accounts. It appears that savers are being heavily penalised for wanting access to a branch as opposed to using an online savings account. Although the administration of online savings accounts is cheaper and easier for the institutions does it really account for such large differences between the rates offered?
What should you do:
Compare Savings Accounts
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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