Savers Urged To Switch To Secure Best Rates | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 22/06/2021

Of the 15 most popular bank and building societies, just six offer rates able to beat the average easy access saving rate of 0.17%, revealing how important it is for savers to switch to ensure that they get the best possible rates.

Banks and building societies, such as HSBC, Lloyds and NatWest, are paying rates from as little as 0.02% on their easy access savings accounts. Meanwhile, many challenger banks which are likely to be unfamiliar brand names are offering much more competitive rates. In fact, the majority of banks paying the top easy access saving rate of 0.50% AER are likely to be unfamiliar with many savers with Atom Bank, Charter Savings Bank, Cynergy Bank, ICICI Bank UK as well as Virgin Money all paying the top easy access savings rate.

“Consumers would be wise to re-think their decision making and relinquish any sentiment towards well-known brands when it comes to their savings” explained Rachel Springall, finance expert at Moneyfacts.co.uk. “Even in a low-interest-rate environment, it is clear to see how savers can be better off by switching their easy access account. Seven out of 15 well-known brands fail to even beat the Bank of England base rate of 0.10% based on the average rate of their range.”

Savers looking to secure the best possible savings rates should compare rates using our easy access savings chart. Here, savers will find that although the best rates are being offered by challenger banks, familiar established building societies such as Nationwide Building Society’s 1 Year Triple Access Online Saver 12 and Yorkshire Building Society’s Annual Access Account Issue 8 are paying a highly competitive rate of 0.45% AER.

How easy is it to switch easy access savings accounts?

Although all savers looking to get the best rate should regularly check the savings charts, easy access savings accounts often have the lowest rates of all savings accounts making it even more important for these savers to get the best possible rates.

Fortunately for those saving into an easy access savings account, this is the easiest type of account to switch to a better paying deal. Money within easy access savings accounts can be withdrawn on request and, although some do come with a maximum number of withdrawals, they normally allow savers to withdraw their money at any time. This is unlike fixed rate bonds, where money is often locked into the account for the length of the term, or notice accounts, where notice has to be given before money can be withdrawn.

Often, savers can switch easy access savings accounts from the comfort of their own home, as many of these accounts can be opened and managed online.

Are your savings safe with a challenger bank?

Although some savers may be wary of putting their hard-earned savings into an account with an unfamiliar bank, all saving accounts in our charts (unless otherwise clearly stated) are under the Financial Services Compensation Scheme (FSCS). The FSCS protects deposits of up to £85,000 for a sole account in the event that the bank falls into financial trouble. Only deposits up to the maximum limit under one banking licence are protected but a full list of which banks are under which banking licence can be found in our depositor protection schemes guide.

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