Switching from a high street bank to a leading savings account could triple your returns

The benefits of switching to a better savings rate are highlighted in Moneyfactscompare.co.uk’s new TV adverts.

Inflation and high living costs aren’t the only risk to our savings pots, as inactivity and failing to switch accounts could cause some savers to lose out on hundreds of pounds in interest, analysis by Moneyfacts revealed.

Easy access savings accounts from high street banks* pay an average interest rate of just 1.39%, which equates to a return of £347.50 over 12 months on a £25,000 deposit.

By contrast, savers who deposit the same sum over the same period in an account paying 4.50% (the top easy access savings rate available) could receive a significantly higher return of £1,125.00.

“Big banks are taking far too many savers for granted by paying them paltry returns on their savings, but the best way to fight back is to ditch your apathy. Whether you’re saving for financial security, a special occasion or a big purchase, shopping around for the best interest rates really can make life more interesting,” Adam French, Head of News at Moneyfactscompare.co.uk, commented.

* The comparison is between the top eligible easy access rate and the average rate paid across similar easy access accounts offered by leading high street banks and building societies (Barclays Bank, HSBC, Lloyds Bank, NatWest, Santander, Nationwide BS, TSB, The Co-operative Bank) that offered the following features as at 3 November 2025: easy access to funds, unlimited withdrawals, available to any UK adult saver, no account fee & available to new customers.

Shop around to beat inflation

The difference in returns looks particularly concerning if you factor in the eroding impact of inflation.

For example, a £25,000 deposit in an account paying a below-inflation interest rate of 1.39% would lose around £600 in real terms over 12 months. This is because the interest you earn on your savings wouldn’t keep up with the rising cost of goods and services, so your money would buy less than it did before.

On the other hand, ensuring your money is in a savings account paying interest above inflation (currently at 3.8%) will help it to grow in real terms. Taking inflation into account, savers would get a real return of £175 if they deposited £25,000 in an account paying 4.50% for 12 months.

Despite the relatively high level of inflation, there are still plenty of opportunities for savers to secure a competitive interest rate and protect their money from rising prices.

“Even small differences in interest rates can make a big difference over time, especially when inflation is considered,” French noted, adding that “a simple change can mean hundreds more in returns”.

New campaign to highlight the importance of switching

One in four savers (23%) said they had never switched savings accounts, with a further 23% admitting that they switched accounts less than every couple of years, data from the recent Moneyfacts Savings Trends Index uncovered.

As highlighted above, this apathy and inaction could be costing those who keep their savings in their current account or a low-paying account with a major bank hundreds of pounds in interest. Leaving your money in the same account for several years (or more) means you’re likely to miss out on the best rates, especially if your provider regularly lowers the interest rate it pays to its existing customers.

New television adverts from Moneyfactscompare.co.uk, which will start appearing on air this month, aim to promote the importance of proactively reviewing your savings accounts and shopping around for the best rates. These live action adverts follow on from our animated television campaign that launched in March 2023 and returned to our screens for several months in 2025.

“There are still many consumers getting a raw deal on their savings or having their hard-earned cash eroded by the rising cost of living. We hope our new TV adverts prompt savers to review their accounts and consider making a switch,” Richard Ward, Sales and Marketing Director at Moneyfactscompare.co.uk, explained.

You can read more about the new advertising campaign and view the new Moneyfactscompare.co.uk TV advert here.