You are here: Home - Saving & Banking - News -

Building societies trump banks in savings rate battle

0
Written by:
20/02/2017
Building societies continue to offer greater value to long-suffering savers than banks, figures reveal.

Over 80% of building society accounts pay more than the 0.25% Bank of England base rate, compared to just 58% of accounts held with banks, according to the statistics from Savings Champion.

The rate tracking firm said the average live variable rate from banks has halved in the last five years.

Throughout 2016, building societies, on average, paid significantly higher rates than their banking counterparts – 1.09% versus 0.81%.

Savings rates have tumbled in recent years especially since the introduction of the government’s Funding For Lending scheme in 2012 and Term Funding Scheme last year. These schemes provide banks with access to cheap funding, which means they no longer have to compete as fiercely for savers’ deposits.

Susan Hannums, director at Savings Champion, said: “These figures highlight some of the stark differences between the two types of provider, with building societies demonstrating a greater commitment to treating their customers more fairly than some of their banking counterparts.

“Whilst there are exceptions within each group, in particular the challenger banks, which continue to support savers with better rates on offer for those looking to open accounts, on the whole the figures tell an interesting story for customers of both groups.”

She said traditional banks continue to demonstrate their reluctance to encourage both new and existing customers to put their money with them and those who hold low-paying accounts with them need to switch to a better alternative.

Best building society savings rates

Provider Account Name Gross AER Minimum Maximum
Easy Access Leeds Building Society Limited Issue Online Access Account 1.05% 1.05% £1,000 £250,000
West Brom Building Society WeBSave Bonus Saver 2 1.05% 1.05% £1,000 £250,000
Coventry Building Society Easy Access Saver (4) 0.85% 0.85% £1 £250,000
Variable Rate ISAs Teachers Building Society Cash ISA Notice 90 (Issue 6) 1.05% 1.05% £100 £100,000
Coventry Building Society Easy Access ISA (5) 0.90% 0.90% £1 £15,240
Children’s Account Saffron Building Society Children’s Regular Saver 4.00% 4.00% £5 £1,200
Junior ISA Coventry Building Society Junior Cash ISA 3.25% 3.25% £1 No Maximum
Help to Buy ISA Buckinghamshire Building Society Help to Buy: ISA Issue 2 2.25% 2.25% £1 No Maximum

 

Worst bank savings rates

Provider Account Name Gross AER Minimum Maximum
Live HSBC Flexible Saver 0.01% 0.01% £1 £1,000,000
NatWest Instant Saver 0.01% 0.01% £1 £10,000,000
Royal Bank of Scotland Instant Saver 0.01% 0.01% £1 £49,999
0.05% 0.05% £50,000 £1,000,000
Barclays Everyday Saver 0.05% 0.05% £1 £10,000,000
HSBC Flexible Saver – Preferential rates 0.05% 0.05% £1 £1,000,000
HSBC Premier Savings 0.05% 0.05% £1 £10,000,000
Closed HSBC Instant Access Savings 0.01% 0.01% £1 £10,000,000
Santander Instant Saver 0.01% 0.01% £1 £2,000,000

 Source: Savings Champion. Data correct as of 20.2.17

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2337667-nest-egg-savings-isa-pension
Challenger bank unveils market leading savings rates

Challenger bank Charter Savings has increased rates on four of its fixed rate bonds and launched two new market-leading products.

Close