Is your loyalty costing you hundreds of pounds in interest?

Savers urged to consider lesser-known providers to avoid missing out on almost £300 in interest.

Consumers could be missing out on hundreds of pounds of interest through loyalty to big high street banks, new analysis from Moneyfactscompare.co.uk revealed. On average the UK’s biggest banks offer a paltry 1.19% on their flexible easy access accounts^*, down from 1.37% last year. This means big banks are paying below the average easy access rate – which sits at 2.42%.

By contrast, the top challenger banks pay 4.12% on average across their easy access accounts^**.

This loyalty isn’t paying off – as savers with £10,000 in an easy access account earning a typical big bank rate could be missing out on £293 a year compared to switching to the typical rate charged by some of the top challenger banks.

“With savings rates expected to drop further from the peaks seen over the past few years, staying in a low-paying account may amplify the cost, making it harder for savers to reach their financial goals. Switching to a lesser-known challenger bank could help offset this, as they often offer more attractive rates,” Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, commented.

Should I consider a challenger bank?

Challenger banks are typically smaller, sometimes recently launched, banks. While savers may be wary about placing their money with an unfamiliar name, they are covered under the Financial Services Compensation Scheme (FSCS) – making them just as safe as the big high street banks. See our guide for more information on challenger banks.

As they are often digital and use the latest technology, challenger banks typically have lower operating costs, which means they can afford to offer higher interest rates.

For example, the leading easy access account, the Chase Saver With Boosted Rate, currently pays 4.50% AER, inclusive of a 2.23% bonus for 12 months (available in the first 31 days of being a new Chase current account customer). If savers deposited £10,000 in this account, after one year they could make an attractive £450 in interest.

However, Eastell warns that savers should remain alert. “Challenger banks often lead the market with headline rates that include limited-time bonuses, sometimes exceeding 2%.”

While bonus rates can benefit savers who are able to frequently shop the market for the highest rates once their bonus expires, those who don’t are at risk of being left behind. This is why it’s important to review your accounts and switch to secure better returns.

_{*Big bank easy access selection: Barclays Bank, Everyday Saver, 1.05%. HSBC, Flexible Saver, 1.14%. Lloyds Bank, Easy Saver, 0.75%. NatWest, Flexible Saver, 1.00%. Santander Easy Access Saver, 2.00%. Data correct as of 9 February 2026.}

_{**Challenger bank easy access selection: Charter Savings Bank, Easy Access – Issue 70, 4.06%. Chase, Chase Saver With Boosted Rate, 4.41% (includes 2.23% bonus for 12 months). Kent Reliance, Easy Access Savings Account – Issue 13, 4.07%. Shawbrook Bank, Bonus Easy Access Savings Account – Issue 5, 4.05% (includes 1.98% bonus for 12 months). Spring, Easy Saver, 4.03%. Data correct as of 9 February 2026.}