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

Forget loyalty: the best savings deal can net you 100+ times more interest

0
Written by: Paloma Kubiak
05/12/2017
Loyal savers are being taken for a ride, with some accounts paying paltry rates. People switching to the best deal can get 144 times more interest than the rates offered by some high street banks.

Last month, the Bank of England raised the Base Rate from 0.25% to 0.5% and governor Mark Carney said he expected the banks to pass on the rise in the form of higher interest rates on savings accounts.

But research from Savings Champion has found that not all banks have passed on the full 0.25% rise.

As an example, Santander’s Instant Saver has gone from 0.01% to 0.10% – a rise of just 0.09% – and HSBC’s Flexible Saver rate is still languishing at 0.01%.

If these customers were to move their savings to the top-paying accounts without access restrictions (Birmingham Midshires Internet Saver at 1.45%), they can get 144 times more in interest in a year.

On a savings deposit of £85,000, that’s the difference in earning a pitiful £8.50 a year or £1,232.50.

Anna Bowes, director of independent savings advice site, Savings Champion, said: “Some providers will argue that they haven’t increased rates by as much as the base rate rise, because they are matching what they dropped them by last year, when the base rate was cut. But often that will be because the rate of interest they were paying was so low that they couldn’t actually cut by the full amount.

“Savers who fail to move their money from these accounts are allowing themselves to be robbed, as they are missing out on additional interest compared to the top-paying accounts.

“A general malaise has spread across the savings market because of the continual low rates of interest available. But savers need to realise that the high street banks are using this to offer them much lower rates than they can get elsewhere because of the feeling that ‘there is not much to be gained by switching.”

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:
pensions
UK retirees expect to receive 29% of working salary as pension

Working people in the UK expect to earn less than a third of their salaries as their retirement income, far...

Close