With closed easy access rates as low as 0.00% AER - is it time to change your savings account?

Savers staying loyal to their existing savings account could be getting 0.00% AER interest on their easy access accounts, our research has found.

In researching the lowest rates on closed accounts, we found that the lowest closed easy access rate stands at 0.00% AER and the lowest closed easy access ISA is 0.05% AER. This means that some savers are getting no interest on their savings. However, with the top rate in the easy access savings chart standing at 1.31% AER and the top rate in the easy access ISA chart standing at 1.25% AER, by switching to a account savers could increase their savings rates by up to 1.31% or 1.20% on an easy access ISA.

In addition to this, our research has found that in the last four months the average rate on a closed easy access account has fallen from 0.70% AER in January 2020 to 0.68% AER today. During the same period, the average rate on an easy access ISA has fallen from 0.82%AER to 0.79% AER. This means many savers with a closed account will have likely seen the interest rate on their savings fall this year. As well as this, with the Bank of England cutting base rate twice last month and with it now standing at 0.10%, its lowest level on record, rates may fall further in the coming months.

Average closed rates

A closed account and a closed ISA are savings accounts that are no longer available to new customers, but the account is still being used by savers who have already opened it. While a closed account can sometimes offer a higher rate than is currently available in the charts, savers with a variable rate closed savings account or ISA should be aware that rates can be changed. It is for this reason that savers with a closed account, or who have had their account for a long period of time, should check to see the current rate it is paying and, if there are better deals currently available in the charts, to consider switching to a new savings account.

Rachel Springall, finance expert at Moneyfacts.co.uk said, “It just goes to show that savers cannot afford to be lethargic with their nest eggs. Interest rates are on the downward trend so it would be a wise move for savers to check their rate and switch to a more attractive deal if they find they are earning next to nothing on their hard-earned cash. Providers will notify their existing customers of rate changes, but it is down to the saver be proactive and review the change and move their cash. Speed is crucial and it is important that savers get online to find some of the best rates and keep on top of the changing market.”