Banks are now beating building societies in the race to offer the most competitive deals on savings accounts, according to research by Moneyfacts.co.uk. While the average interest rate paid by banks on a cash ISA is currently 2.25%, building societies are paying on average just 1.98%. Banks also lead the way in both the no notice and notice account savings markets, paying on average 1.01% and 1.30% respectively, compared with the 0.76% and 0.98% paid by building societies (on a £5K investment). The only area in which building societies excel is fixed rate bonds, paying an average rate of 2.98% on a £5K investment compared with 2.71% by the banks. However, despite no longer offering the best overall range of savings products, building societies are still responsible for the majority of the leading deals in the market, taking 60% of the places in our best buy tables. "The banks have come in for plenty of criticism in the last 18 months, but overall they are offering the best deals to their customers," said Michelle Slade, analyst at Moneyfacts.co.uk.
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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.