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Easy access savers who stick with the most familiar banks could be missing out on much bigger returns, as these accounts still pay less than base rate (which currently stands at 0.50%). So, if you have a current account with one of the biggest banks and are unhappy with the rate on your linked savings account, for instance, you may want to look at some less familiar brands to switch to.
Indeed, our latest research shows that the difference between the best easy access account on the market and the worst big bank rate, when looking at the biggest providers (Bank of Scotland, Barclays Bank, Halifax, HSBC, Lloyds Bank, NatWest, Royal Bank of Scotland, Santander and TSB), could see savers £250 better off per year thanks to interest (based on a £20,000 deposit). The tables below further illustrate just how big the difference can be.
Provider | Account | Gross Rate at £10k |
---|---|---|
RCI Bank UK | Freedom Savings Account | 1.30% |
Kent Reliance | Easy Access - Issue 26 | 1.30% |
Shawbrook Bank | Easy Access - Issue 11 | 1.25% |
Yorkshire BS | Single Access Saver Issue 9 | 1.25% |
Bank of Cyprus UK | Online Easy Access Account | 1.25% |
Ford Money | Flexible Saver | 1.22% |
Virgin Money | Double Take E-Saver - Issue 5 | 1.20% |
Sainsbury's Bank | Defined Access Saver - Issue 3 | 1.20% |
Tesco Bank | Internet Saver | 1.18% |
AA | Easy Saver - Issue 7 | 1.18% |
Source: Moneyfacts.co.uk
Provider | Account | Gross Rate at £10k |
---|---|---|
Bank of Scotland | Access Saver | 0.20% |
Barclays Bank | Everyday Saver | 0.20% |
Halifax | Everyday Saver | 0.20% |
HSBC | Flexible Saver | 0.05% |
Lloyds Bank | Easy Saver | 0.20% |
NatWest | Instant Saver Account | 0.10% |
Royal Bank of Scotland | Instant Saver Account | 0.10% |
Santander | eSaver (Issue 15) | 0.15% |
TSB | Easy Saver | 0.40% |
Source: Moneyfacts.co.uk
"Savers are paying for the convenience of keeping their cash with their main bank, rather than chasing down the best possible deal for flexible access to their savings," commented Rachel Springall, finance expert at moneyfacts.co.uk. "HSBC currently pays 0.05% on an easy access account, which would earn just £10 a year in interest on a £20,000 deposit."
In contrast, "the more unfamiliar brands, such as challenger banks, are fighting for savers' attention by offering some decent deals," Rachel said. "In comparison to HSBC's account, for example, RCI Bank UK would return £260 on the same deposit."
While we talked last week about the next base rate rise now seeming less likely to occur in May, many could still be pinning their hopes on it. Additionally, Rachel pointed out that "as we have seen in November, there is no guarantee that every savings provider will pass on a rate rise. Some of the biggest banks were very selective about which accounts got the full 0.25% rise in November."
With that in mind, Rachel concluded: "As the savings market continues to improve away from the big banks, it's more important than ever for consumers to be on the lookout for a better rate, and more importantly, switch if they are getting a raw deal."
Have a look at our easy access account charts – with or without a fixed bonus – to see if there's a deal there worth your attention
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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
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