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Image of Rachel Springall

Rachel Springall

Finance Expert & Press Officer
Published: 13/03/2023
Canary Wharf at night

Some of the UK’s biggest banks are still paying less than 1% on their easy access deals.

In a series of letters released at the beginning of this month, the Treasury Committee criticised some of the UK’s high-street banks. Part of these letters questioned why some of their easy access rates remain low, especially when the Bank of England’s Base rate sits at 4%.

According to Moneyfactscompare.co.uk analysis, Barclays Bank, Bank of Scotland, HSBC, Halifax, Lloyds Bank, NatWest, Royal Bank of Scotland, Santander and TSB all have easy access accounts paying less than 1%.

By contrast, there are several challenger banks and building societies which offer more than 3% on their easy access deals.

Big bank* easy access selection

Provider

Account

Gross rate at £10k

Bank of Scotland

Access Saver

0.80%

Barclays Bank

Everyday Saver

0.55%

Halifax

Everyday Saver

0.80%

HSBC

Flexible Saver (Standard)

1.19%

Lloyds Bank

Easy Saver

0.65%

NatWest

Flexible Saver

0.65%

Royal Bank of Scotland

Flexible Saver

0.65%

Santander

Everyday Saver

0.60%

TSB

Easy Saver

0.70%

Deals available to new customers and includes accounts that allow multiple withdrawals without penalty.

Based on a £10,000 deposit, gross rates.

*Banks selected for comparison are considered the biggest on the high street. This comparison looked at Barclays Bank, Bank of Scotland, HSBC, Halifax, Lloyds Bank, NatWest, Royal Bank of Scotland, Santander and TSB. Please note, NatWest and Royal Bank of Scotland are due to increase the Flexible Saver rates from 0.65% to 1.00% from 21 March 2023.

 

The Treasury Committee is expecting responses from Barclays Bank, HSBC, Lloyds Banking Group and NatWest Group this week.

It will be interesting to see the responses, which are anticipated this week, particularly when challenger banks and building societies are increasing rates.

The cost of convenience

Convenience is costing savers who keep their cash stashed in an easy access account with a big high street bank.

As the Bank of England base rate has risen all the way up to 4%, it is evident loyal savers haven’t seen the full benefits passed on to them.

Savers who compare the top easy access rates will find they currently pay 3% or more, and every brand has the same protections in place as the big bank brands do, being covered by the Financial Services Compensation Scheme (FSCS).

Where can I find the best savings rates?

Use the Moneyfactscompare.co.uk savings charts to find the best deals on the market. From easy access accounts to fixed rate bonds, these tables are updated daily to keep you updated with the latest trends on the market.

Top easy access deals

Provider

Account

Gross rate at £10k

Chip

Instant Access powered by ClearBank

3.35%

Family Building Society

Online Saver (5)

3.20%

Zopa

Smart Saver

3.16%

Coventry BS

Limited Access Saver (Online) (8)

3.10%

Paragon Bank

Triple Access Account - Issue 11 (0-3 withdrawals pa)

3.10%

Sainsbury's Bank

Defined Access Saver - Issue 40 (0-3 withdrawals pa)

3.07%

Secure Trust Bank

Access Account (Issue 6)

3.06%

Shawbrook Bank

Easy Access - Issue 33

3.06%

Gatehouse Bank

Easy Access Account

3.05%

Buckinghamshire BS

Triple Access Saver

3.05%

Deals available to new customers and does not include accounts that have a local area restriction.

Based on a £10,000 deposit, gross rates.

 

However, every institution can have its own reasons and margins in place that leads it to assess its savings rates.

Challenger banks and building societies may well prioritise offering a fair deal compared to the wider market and adjust their rates to cope with demand or other market influences. Mutuals may be worth considering, not just for their savings rates, but also for their principles and the support of local communities and charities.

It will be down to savers to compare the rates on offer and move their money, so it is wise to review any accounts often and not presume they will see their rate rise in line with base rate.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.