Fresh analysis from our Moneyfacts Consumer Duty Audit Tool for Savings shows that despite offering fixed accounts that sit within or towards the top quartile of the market – rates offered on flexible easy access accounts by these providers still fail to come anywhere near the market leaders.

• The big banks’ flexible easy access accounts* rest in the bottom quartiles: Barclays Bank (third quartile), HSBC (third quartile), Lloyds Bank (bottom quartile), NatWest (bottom quartile), and Santander (third quartile).
• The biggest high street banks currently offer fixed bonds that sit either in the top or second quartile of the market: Barclays Bank (second quartile), HSBC (top quartile), Lloyds Bank (top quartile), NatWest (top quartile) and Santander (second quartile).
• According to the FCA’s Consumer Duty rules, firms will need to justify, by the end of August, how their savings rates offer fair value.

Rachel Springall, Finance Expert at Moneyfacts, said:

"The big banks continue to face criticism over their savings rates, and while it is clear to see many of these banks have priced their fixed bonds competitively, the same cannot be said for their most flexible savings accounts. As the FCA expects firms to justify how their lowest rates offer fair value, the big banks can show they do pay decent returns on fixed bonds, and that they also offer alternative accounts for their loyal customers away from the straightforward easy access accounts. There are some banks which have made more increases on their easy access accounts than others, such as HSBC, but many customers elsewhere, may be disappointed that their loyalty is not being rewarded.

“At the start of December 2021, before the first of 14 consecutive Bank of England base rate rises, the majority of the big high street banks paid 0.01% on their easy access accounts. The frustration of savers expecting to see base rate passed onto them has not gone unnoticed by the FCA, so it will be interesting to see what brands do next to justify their current savings rates. It will still be down to customers to keep a close eye on their savings rates and switch if they think they’re getting a raw deal.”

Fixed bond data extracts from using the Moneyfacts Consumer Duty Tool for Savings (Data correct as of 7 August 2023):

• Barclays Bank - Pays the highest rate of interest on its two-year fixed rate bond and ISA. At 4.40% gross, these accounts sit within the second quartile of their respective markets. The one-year equivalent accounts pay a slightly lower 4.30% and, while the bonds also fall into quartile two, the ISAs sit in the third quartile. The best rates on offer at Barclays Bank are exclusively available to its Premier Banking customers. 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 pay gross rates of 5.10% for two years and 5.05% for one year and are available to new and existing HSBC current account holders. Both accounts take a place in the first quartile.
• Lloyds Bank - All the bonds and ISAs 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 0.05%, however, new customers are eligible for interest of 5.45% on one-year terms and 5.50% for two years.
• NatWest - Almost all of 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 5.70% and 5.90% 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 tiered rates reaching 5.65% and 5.75% gross only on balances of £100,000 or more (the bonds pay 5.41% and 5.51% respectively at £10,000).
• Santander – This brand sees some of its fixed bonds make it into the second quartile of its sector. While Private Banking or Select customers are offered preferential rates of 0.20% higher than your everyday customer, the ordinary one-, two- and three-year bonds all pay 4.40% gross. The usual fixed rate restrictions apply, such as further additions and withdrawals are not permitted.