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

Savers are better off with building societies than banks, says research

0
Written by:
14/01/2020
Building societies continue to pay better rates on savings accounts than banks, analysis shows.

More than two-thirds (67%) of building society accounts pay a higher rate than the Bank of England base rate, which is currently 0.75%, compared to just over half (51%) of banks, according to Savings Champion.

Over the last 12 months, the overall average variable interest rate paid by building societies was 1.07%, compared to 0.84% from the banks.

Anna Bowes, co-founder of Savings Champion, said: “When it comes to the average rates, there is a clear disparity between the two groups and it demonstrates that building societies on the whole pay higher rates and are therefore treating savers more fairly than banks.”

However, Bowes pointed out that challenger banks are clearly the exception to the rule as many of these providers dominate the best buy tables.

“The same cannot be said of the big high street banks, which are dragging the average rates down by paying some of the worst rates on the market,” Bowes said.

New measures announced by the city regulator last week may improve the rates on some old accounts, but savers are still encouraged to switch to a more competitive deal rather than accept paltry returns.

Under the new rules, banks will have to set one easy access rate for all accounts that have been open for more than 12 months. They will still be able to offer multiple introductory rates but after the one year, all accounts must pay the same rate and details of this rate must be published every six months to help savers compare deals.

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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...

Money Tips of the Week

Read previous post:
robo-advice
Robo-adviser Moola to close: what customers need to know

Digital saving and investment service Moola will close all customer accounts next month, the firm has announced.

Close