Some of the rates offered on flexible easy-access accounts by high street banks have worsened since the last analysis in Moneyfacts’ Consumer Duty Audit Tool for Savings.
The big banks typically pay 1.42% on their standard flexible easy-access accounts, according to Moneyfacts. This is significantly lower than the market average rate of 2.9% and far below current best buys which are more than 4.5%.
What do the big banks pay?
The big banks’ flexible easy access accounts all sit in the bottom two quartiles.
Focusing on deals available to new customers and including accounts that allow multiple withdrawals without penalty, here’s how much interest they pay on a £10,000 deposit:
- Barclays’ Everyday Saver pays 1.5%
- HSBC’s Flexible Saver pays 1.74%
- Lloyds Bank’s Easy Saver pays 1.15%
- Natwest’s Flexible Saver pays 1.49%
- Santander’s Easy Access Saver pays 1.2%
Rachel Springall, finance expert at Moneyfacts, said: “It will be disheartening news for savers to find the biggest banks have cut rates on their most flexible savings accounts, resulting in a further drop in their market positions.
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“As challenger banks work hard to improve their market positions and gain trust, the biggest banks don’t need to make too much effort to pull in investors due to their legacy.
“Loyalty does not pay which is why savers need to look beyond the biggest brands when comparing savings rates. The big banks’ most flexible accounts pay an average rate of 1.42% gross between them, which is significantly lower than the market average rate of 2.90% gross, based on a £10,000 deposit. Regularly reviewing and switching pots is essential when interest rates change, particularly when base rate cuts flow into the savings market.”
Springall added: “The Consumer Duty rules from the Financial Conduct Authority (FCA) are designed to provide better value for consumers, and it will be up to providers to ensure they are offering their customers fair value. Savers must complain if they are receiving poor service and look elsewhere if they have run out of patience.
“There are a multitude of brands covered by the Financial Services Compensation Scheme (FSCS), so it’s wise for savers to take some time to navigate the different options out there which could offer better value.”