Customers of several major UK high street banks, including NatWest, Santander, Halifax, and Lloyds, are being advised to consider a radical move: closing their accounts to secure better returns elsewhere.
The Best Savings Rates Revealed
Financial experts are urging bank account holders to actively seek out high interest rate deals to enjoy "real returns" that outpace inflation. A recent analysis has revealed a significant gap between the offerings of traditional banking giants and those of smaller, often online-based, providers.
The top-tier regular savings accounts are currently led by Principality Building Society with a rate of 7.5 per cent AER, followed closely by Zopa at 7.1 per cent and Progressive BS, Co-Operative Bank, and Nationwide BS, all offering competitive rates around the seven per cent mark.
Major Banks Missing from Top Lists
Despite Nationwide's presence among the leaders, a conspicuous absence was noted for other major players. There was no space for NatWest, Santander, Halifax, Lloyds, or HSBC UK in the rankings for the best savings accounts.
For those considering fixed-term options, the best one-year fixed interest rates come from institutions like LHV Bank (4.46 per cent AER), Conister Bank (4.45 per cent), and Habib Bank Zurich (4.45 per cent). The top easy access account is offered by cahoot at five per cent AER, with Chase and Snoop also providing competitive rates.
Expert Advice: Shop Around and Check the Small Print
Caitlyn Eastell, a spokeswoman at Moneyfactscompare.co.uk, provided crucial guidance for savers. She highlighted that while Moneybox leads the Cash ISA market with a 4.52 per cent AER, this includes a bonus that expires after 12 months and comes with withdrawal limits.
"Regular savers can earn up to 7.50 per cent AER, outpacing inflation by over 3 per cent, but it’s vital to check the terms and conditions for any restrictions," Eastell stated.
She also issued a warning about the broader market, noting that the average savings rate has dipped slightly from 3.43 per cent to 3.42 per cent. Her final advice was clear and direct: "Savers need to shop around and consider challenger banks, rather than sticking with providers out of loyalty." This underscores a pivotal moment for consumers to proactively manage their finances and seek the best savings accounts available, even if it means moving their money away from familiar high-street names.
