Over Half Of Savings In Easy Access Accounts | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 17/02/2021

Since the start of the Coronavirus pandemic, savers have been opting to put their money into easily accessible accounts, leading to a surge in popularity of easy access accounts and research from Paragon Bank has found that these accounts now account for 58% of the total savings market.

According to the research, the average balance in easy access accounts has increased by 10% year-on-year, from £9,995 to £10,989. In addition to this, over the last year the number of accounts with balances under £500 has decreased in 2020, while accounts with balances of more than £500 has increased, suggesting that those who have had extra disposable income since the start of the pandemic have been putting money into easy access accounts.

Commenting on the research, Derek Sprawling, savings director at Paragon Bank, said: “As the third lockdown continues, a significant number of Brits are still seeing their expenditure go down considerably as they spend more time at home, and this is leading to record-breaking savings. With building a rainy day fund a priority for many savers, people are choosing to put that money in easy access accounts so they can withdraw funds easily should they need to.

“However, this means that many savers aren’t receiving the most competitive rate of interest available. In fact, data shows that close to three-quarters of easy access balances now earn a rate of 0.1% or less, amounting to a total of £403 billion’s worth of savings.”

How to get the best easy access savings rate

The average rate on an easy access savings account stands at 0.17%, but there are many savings accounts that pay above and below this rate. As already highlighted, a number of easy access accounts pay as little as 0.1%, which means that these savers are earning next to no interest on their savings. As such, savers should find out how much interest their easy access savings account is paying and consider switching accounts if necessary.

Last week we highlighted that savers may want to consider a challenger bank when looking to get the best savings rates, as these banks often offer higher rates than high street banks and building societies. The highest rate in our easy access savings chart today currently stands at 0.60% AER, which is being offered by ICICI Bank UK on its SuperSaver Savings Account. Meanwhile, six accounts offer the next-best easy access savings rate of 0.50% AER.

When looking at easy access savings accounts, savers should be aware that these accounts can reduce rates at any time, which means that savers need to remain vigilant about the rate their account is paying. As well as this, savers should regularly check the easy access savings charts to see if new higher rates have entered the charts and act quickly to avoid missing out on the best rates available.

A full list of the current easy access accounts available today can be found in our easy access savings charts.

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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