More than half (55%) of account holders had their savings in a traditional bank account, compared to 23% who used a building society and lost out on higher interest rates.
On average, savers could have earned an extra £547 each, according to Yorkshire Building Society, had they opted for choosing the provider’s savings account, which boasted an average of 3.43% last year.
This rate is 41% higher than the market average.
More respondents felt that building societies had better rates, were more trustworthy, and had better customer service.
Interest rates on savings accounts across the board remain strong, with the top rate (as of 8 October) on the market offering 5% for borrowers.
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This comes from the investment and savings app Chip, which, as an app-only provider, is not found on the high street.
The leading mutual was Coventry Building Society’s 4.83% on its Triple Access Saver (Online 5) that requires a minimum deposit of just £1 to open.
Customers asked by Yorkshire Building Society also felt that building societies provided better value for money, with 23% believing mutuals had that perk, compared to 14% of those who believed banks did.
Selecting a mortgage was also preferred by 57% of homebuyers, compared to just over a third (36%) who opted to use a building society.
For borrowers under 34 years old, just a third (32%) had a mortgage with a building society, while almost double (63%) chose a bank to finance their home.
Building societies are ‘punching above their weight’
Tom Simpson, interim chief commercial officer at Yorkshire Building Society, said: “Building societies are punching above our weight in many ways – we’re paying more in interest and we’re doing more to help people buy homes.
“There is a lot of competition out there, with new banks and financial technology companies emerging all the time.”
Simpson added: “We’re determined to continue to do what is best for our customers so they stay with us and we’re always working hard to show people the benefits of being with a building society.”
