Are your savings earning their worth? A new survey reveals shocking gaps in interest rates among the UK’s biggest banks, with some falling far behind competitors. Find out which banks are lagging—and where your money might be better off this holiday season.
Santander, Barclays, Lloyds Customers Urged to ‘Switch’ for Better Rates
By Chourouk Derkaoui
Published on 16 November 2024 16:22
This Christmas, savers have been advised to move their funds from a number of prestigious banks. However, a shocking new personal finance survey has warned that interest rates at the big banks are ‘lag behind’ and urged savers to move their funds.
Nationwide and NatWest Shine as High Street Banks Lag on Savings Rates
Interest rates on savings have risen historically in recent years, but according to new research, some major banks are failing to pass on these increases to their customers. In a recent Which? Survey, HSBC, Barclays, and Bank of Scotland all had poor customer satisfaction ratings of around 65%.
Nationwide is the only UK bank not to feature in the top 20 providers. With HSBC running at 2%, Bank of Scotland at 1.8% and Barclays at 1.6%, the traditional banks are offering much lower rates.
The third-lowest interest rates were achieved by Barclays and Santander, with 51 each. In addition, Bank of Scotland scored a pitiful 52, while Lloyds Bank received a 53. With 76 and 87 respectively, Nationwide and NatWest were the two banks that managed to maintain satisfactory ratings.
- HSBC: Offered a rate of just 2%, resulting in a customer satisfaction score of 65%.
- Barclays: Recorded an even lower rate of 1.6% and scored 51 in satisfaction.
- Bank of Scotland: Managed a 1.8% rate, but scored a disappointing 52 for customer satisfaction.
Best Savings Accounts (Week Beginning November 11, 2024)
High Rates for Nationwide, NatWest, and Other Banks/Building Societies:
- Nationwide BS—6.50% AER / Gross
- NatWest—6.17% AER / Six percent Gross
- Royal Bank of Scotland—6.17% AER / Six percent Gross
- Melton BS—6.00% AER / Gross
- West Brom BS—6.00% AER / Gross
- Market Harborough BS—6.00% AER / Gross
- TSB—6.00% AER / Gross
One-Year Fixed Rate Savings Accounts:
- Atom Bank - 4.80% AER / Gross
- Ahli United Bank (UK) plc - 4.80% AER / Gross
- Smart Save - 4.76% AER / Gross
- ICICI Bank UK - 4.75% AER / Gross
- Habib Bank Zurich plc - 4.75% AER / Gross
- Kent Reliance - 4.71% AER / Gross
- Gatehouse Bank - 4.70% AER / Gross
- Al Rayan Bank - 4.70% AER / Gross
- BACB (British Arab Commercial Bank) - 4.70% AER / Gross
Sam Richardson, Deputy Editor of Which? Money, said: "High street banks continue to lag behind digital banks and building societies - not just on the competitiveness of interest rates offered, but also how happy their customers are."
"Some of the top-performing providers in our analysis may not be familiar to consumers, but they have been rigorously analyzed and all are backed by the Financial Services Compensation Scheme,"
he added. Richardson advises that "loyalty is seldom rewarded and, if you're with a high street name, now could be the time to move your money."