James Hyde, Spokesperson at Moneyfacts, said:
“Despite the increased focus on the passing of interest rates onto savers, the big banks have on the whole failed to make their easy access rates more competitive relative to the rest of the market.
“The Financial Conduct Authority’s championing of Consumer Duty challenged banks to price their portfolios competitively, and while their fixed bonds are hitting the mark, some no-notice accounts continue to be worse than average.
“Of the highlighted easy access accounts belonging to the big five banks, only NatWest has seen its option improve its quartile ranking in the past three months – rising to the third quartile from the fourth (bottom).
“Elsewhere, Barclays Bank, HSBC and Santander remain in the third quartile, while Lloyds Bank remains rooted in the bottom tier with an easy access rate of just 1.40%. All four of these accounts have seen rates increased in recent months, but these increases have failed to yield an improved position compared to the rest of the market.
“The better news is that all five providers do offer fixed rate bonds sitting in the top quartile of the market, showing they are willing to pay good returns on accounts which guarantee their capital over a certain period. As always, it is down to customers to proactively monitor savings rates and switch if they discover they can do better.”
Fixed bond data extracts from using the Moneyfacts Consumer Duty Tool for Savings (Data correct as of 6 November 2023):
- Barclays Bank - The one-year fixed rate bond and ISA pay 5.35% and 5.25% gross respectively and both sit in the top quartile. For some term options, Barclays Bank Premier Banking customers can earn higher rates. To qualify for these accounts customers must meet the eligibility criteria – either paying in gross annual income of at least £75,000 or hold savings and investments totalling a minimum of £100,000. These requirements are out of bounds for the vast majority of everyday banking customers.
- HSBC - Fixed Rate Savings paying gross rates of 5.10% for two years and 5.30% for one year are available to new and existing HSBC current or savings account holders. Both accounts take a place in the first quartile.
- Lloyds Bank - All the bonds offered by Lloyds Bank sit in the first quartile. Customers who have held a current account for at least 40 days will benefit from an additional 0.20%, however, new customers are eligible for gross interest of 5.00% on one-year terms and 5.05% for two years.
- NatWest - Almost all the accounts on offer at NatWest are restricted to current account holders, either new or existing - the exception being its fixed rate ISAs which are open to all. These particular ISAs currently sit in the top quartile, paying 5.26% and 5.01% gross respectively for terms of one and two years. While it is common for fixed ISAs to pay a lower interest rate than their equivalent fixed bonds, in this instance the bonds pay less, with rates of 5.23% and 4.90% gross, which sit in the first and second quartiles respectively.
- Santander - This brand sees its one-year fixed bonds make it into the top quartile of this sector, with other terms falling into the second quartile. While Private Banking or Select customers are offered preferential rates of up to 0.20% higher than the everyday customer, the ordinary one-, two- and three-year bonds all pay 5.05%, 4.95% and 4.60% gross respectively for new customers. The usual fixed rate restrictions apply, such as further additions and withdrawals are not permitted. Santander also offers one- and two-year fixed rate ISAs paying 5.25% and 5.10% gross respectively, which both sit in the first quartile and are available to new customers.
James Hyde, Spokesperson at Moneyfacts, said:
“Despite the increased focus on the passing of interest rates onto savers, the big banks have on the whole failed to make their easy access rates more competitive relative to the rest of the market.
“The Financial Conduct Authority’s championing of Consumer Duty challenged banks to price their portfolios competitively, and while their fixed bonds are hitting the mark, some no-notice accounts continue to be worse than average.
“Of the highlighted easy access accounts belonging to the big five banks, only NatWest has seen its option improve its quartile ranking in the past three months – rising to the third quartile from the fourth (bottom).
“Elsewhere, Barclays Bank, HSBC and Santander remain in the third quartile, while Lloyds Bank remains rooted in the bottom tier with an easy access rate of just 1.40%. All four of these accounts have seen rates increased in recent months, but these increases have failed to yield an improved position compared to the rest of the market.
“The better news is that all five providers do offer fixed rate bonds sitting in the top quartile of the market, showing they are willing to pay good returns on accounts which guarantee their capital over a certain period. As always, it is down to customers to proactively monitor savings rates and switch if they discover they can do better.”
Fixed bond data extracts from using the Moneyfacts Consumer Duty Tool for Savings (Data correct as of 6 November 2023):
- Barclays Bank - The one-year fixed rate bond and ISA pay 5.35% and 5.25% gross respectively and both sit in the top quartile. For some term options, Barclays Bank Premier Banking customers can earn higher rates. To qualify for these accounts customers must meet the eligibility criteria – either paying in gross annual income of at least £75,000 or hold savings and investments totalling a minimum of £100,000. These requirements are out of bounds for the vast majority of everyday banking customers.
- HSBC - Fixed Rate Savings paying gross rates of 5.10% for two years and 5.30% for one year are available to new and existing HSBC current or savings account holders. Both accounts take a place in the first quartile.
- Lloyds Bank - All the bonds offered by Lloyds Bank sit in the first quartile. Customers who have held a current account for at least 40 days will benefit from an additional 0.20%, however, new customers are eligible for gross interest of 5.00% on one-year terms and 5.05% for two years.
- NatWest - Almost all the accounts on offer at NatWest are restricted to current account holders, either new or existing - the exception being its fixed rate ISAs which are open to all. These particular ISAs currently sit in the top quartile, paying 5.26% and 5.01% gross respectively for terms of one and two years. While it is common for fixed ISAs to pay a lower interest rate than their equivalent fixed bonds, in this instance the bonds pay less, with rates of 5.23% and 4.90% gross, which sit in the first and second quartiles respectively.
- Santander - This brand sees its one-year fixed bonds make it into the top quartile of this sector, with other terms falling into the second quartile. While Private Banking or Select customers are offered preferential rates of up to 0.20% higher than the everyday customer, the ordinary one-, two- and three-year bonds all pay 5.05%, 4.95% and 4.60% gross respectively for new customers. The usual fixed rate restrictions apply, such as further additions and withdrawals are not permitted. Santander also offers one- and two-year fixed rate ISAs paying 5.25% and 5.10% gross respectively, which both sit in the first quartile and are available to new customers.
