Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:
“Loyal savers who have an easy access account with one of the biggest high-street brands are seeing little benefit from base rate rises, as many of these brands have passed on just 0.09% since December 2021 and none have passed on all three base rate rises, which equate to 0.65%**. The average easy access rate has risen by 0.20% since the start of November 2021, so there is still room for improvement across the sector, but as rates rise, comparing deals and switching is wise. As we have seen before, it can take a few months for customers to see any benefit from a base rate rise but there is no guarantee that savings providers will increase their rates. Should savers see 0.25% passed onto them, it would mean receiving £50 more a year in interest based on a £20,000 investment.
“The top rate tables for easy access accounts are experiencing some rivalry from challenger banks, which is great news for savers who prefer to keep their cash close to hand. There is no certainty for a top rate deal to last very long, but consumers can easily switch between accounts if they desire. If savers are using easy access accounts as a safety-net, they must check that they will not get penalised for withdrawals and ensure it’s still offering a competitive return. Overall, it is positive that savings rates are rising and hopefully will continue to do so in the weeks to come.”
**Brands considered as the biggest high-street banks include Barclays Bank, HSBC, Halifax, Lloyds Bank, NatWest/RBS, and Santander. Out of these, the following brands have not increased rates by 0.65% on these selected easy access accounts since the December 2021 base rate rise: Barclays Bank (Everyday Saver pays 0.01% at £10k gross), Halifax (Everyday Saver - pays 0.15% at £10k gross, up from 0.01%), HSBC (Online Bonus Saver - pays 0.45% at £10k gross, up from 0.05% and Flexible Saver - pays 0.10%, up from 0.01% at £10k gross), Lloyds Bank (Easy Saver – pays 0.10% at £10k gross, up from 0.01%), NatWest/RBS (Instant Saver - pays 0.10% at £10k gross, up from 0.01%), Santander (Everyday Saver - pays 0.10% at £10k gross, up from 0.01%).
Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:
“Loyal savers who have an easy access account with one of the biggest high-street brands are seeing little benefit from base rate rises, as many of these brands have passed on just 0.09% since December 2021 and none have passed on all three base rate rises, which equate to 0.65%**. The average easy access rate has risen by 0.20% since the start of November 2021, so there is still room for improvement across the sector, but as rates rise, comparing deals and switching is wise. As we have seen before, it can take a few months for customers to see any benefit from a base rate rise but there is no guarantee that savings providers will increase their rates. Should savers see 0.25% passed onto them, it would mean receiving £50 more a year in interest based on a £20,000 investment.
“The top rate tables for easy access accounts are experiencing some rivalry from challenger banks, which is great news for savers who prefer to keep their cash close to hand. There is no certainty for a top rate deal to last very long, but consumers can easily switch between accounts if they desire. If savers are using easy access accounts as a safety-net, they must check that they will not get penalised for withdrawals and ensure it’s still offering a competitive return. Overall, it is positive that savings rates are rising and hopefully will continue to do so in the weeks to come.”
**Brands considered as the biggest high-street banks include Barclays Bank, HSBC, Halifax, Lloyds Bank, NatWest/RBS, and Santander. Out of these, the following brands have not increased rates by 0.65% on these selected easy access accounts since the December 2021 base rate rise: Barclays Bank (Everyday Saver pays 0.01% at £10k gross), Halifax (Everyday Saver - pays 0.15% at £10k gross, up from 0.01%), HSBC (Online Bonus Saver - pays 0.45% at £10k gross, up from 0.05% and Flexible Saver - pays 0.10%, up from 0.01% at £10k gross), Lloyds Bank (Easy Saver – pays 0.10% at £10k gross, up from 0.01%), NatWest/RBS (Instant Saver - pays 0.10% at £10k gross, up from 0.01%), Santander (Everyday Saver - pays 0.10% at £10k gross, up from 0.01%).
