Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Savers are being short-changed if they don’t proactively review and switch from their closed easy access accounts. Over the past two years, the average rate on a live easy access account has surpassed the average closed rate, despite base rate rises from the Bank of England and numerous calls for the biggest banks to improve savings rates for existing customers. Savers must shake any apathy they have to move their pots, otherwise they will be left disappointed when their loyalty is not rewarded.

“As some of the biggest high street banks pay less than 2% on their most flexible live easy access accounts, some of the top rates on the market overall pay around 5%. Despite using a trusted brand, the convenience of leaving cash in an easy access account can mean missing out on higher interest rates elsewhere, so it is imperative savers ditch and switch to a better return. Building societies and challenger banks continue to work hard to entice new deposits and reward loyal customers so they are worth comparing against the more familiar high street brands.

“In the months ahead, it will be interesting to see if any savings providers pull closed savings accounts or move customers onto different products as Consumer Duty rules on closed products come into force. According to the Financial Conduct Authority (FCA), firms' closed products and services “will need to be compliant with its expectations under the Consumer Duty price and value outcome” from 31 July 2024. This includes “an easy access savings account which is no longer on sale to new customers”. As it stands, consumers may well have mixed thoughts on how this will impact them, but a recent survey conducted by Moneyhub revealed 36% of respondents felt Consumer Duty “will drive banks to become more customer-centric institutions”.

“As the FCA’s Consumer Duty deadline for closed products nears, it is worth noting that not every institution has a closed savings account, but if they do, customers need to see if they are getting a raw deal. The average rate for an easy access account that is closed to new business is 2.82%, compared to the live easy access rate which is 3.13%, so those with a balance of £10,000 could earn an additional £31 in interest over 12 months simply by switching, based on average rates, but they could be earning £500 a year if they have an account that pays 5%.”