One in two easy access accounts pay below the 0.5% Bank base rate
Savers with money in one of these accounts are both failing to keep up with the Bank rate, and are far below the rate of inflation (2.7% recorded in February).
Given that a Bank Base rate hike is expected next month, savings advice site, Savings Champion said even if providers were to pass on the full 0.25% rise, these accounts would still fall short of the paltry 0.75% returns.
With rates as low as 0.05% available on live easy access accounts, including the HSBC Flexible Saver Account, a Base Rate rise won’t be anywhere near a competitive level.
Further, by switching accounts to the best buy easy access account, savers can boost returns to 1.225% AER – five time that of the Base Rate rise of 0.25%.
Anna Bowes, director of Savings Champion, said: “Some of the rates on offer at the moment are absolutely shocking and the providers that dare to call these savings accounts should hang their heads in shame.
“Even if the Base Rate goes up in May, these accounts will still offer paltry returns and savers must not stand for it. Much better returns are on offer right now, so make sure you shop around and move your cash and these provider a clean pair of heels.”