We've found that some customers are being offered rates of just 0.05 per cent on their easy access accounts, amounting to just £5 in interest on savings worth £10,000 over a year.
Using data compiled by Moneyfacts, we've found accounts including Darlington Building Society's instant access account, Citibank's flexible saver, Bank and Clients personal saver and Al Rayan's on demand savings account are paying the ridiculously low rates.
If you have managed to save up £1,000 in one year with your money in these accounts, you would only earn 50p in interest.
And even someone with a decent chunk of savings wouldn't see much return, as a £10,000 balance would only net you £5.
Instead, savvy savers could earn more by stashing their cash in a higher interest savings account – some of which offer rates of 1.5 per cent.
Where to stash your cash?
If you're looking for the highest interest rates, fixed-rate accounts usually offer better rates than standard easy access accounts.
If you know you won't touch the money for up to five years, it could be worth considering this as an option.
These are the best one- and two-year deals currently available:
- Atom Bank's One Year fixed saver pays a 2 per cent rate with a minimum investment of £30.
- Investec's fixed term deposit account also pays 2 per cent with a minimum investment of £25,000.
- Bank and Clients' two year fixed rate account pays 2.25 per cent with a minimum investment of £1,000.
- My Community Bank's 24 Month fixed term deposit also pays 2.25 per cent with a minmum investment of £1,000.
The benefits of easy access accounts are that you can pay and withdraw money when you want, usually without being penalised. These rates are lower than fixed-rate accounts, but it could be for you if you know you need to access your cash.
If you need an easy access savings, these are the best paying options to consider:
- Goldman Sachs' Marcus account pays 1.5 per cent interest with a minimum investment of £1
- Charter Savings Bank's easy access acount pays 1.4 per cent, as does Shawbrook Bank's easy access and Tesco Bank's internet saver
Last month investment bank Goldman Sachs launched its Marcus savings account, which pays customers the highest savings rate on the market.
The easy-access account offers a rate of 1.5 per cent, including a 0.15 per cent bonus which is fixed for a year.
The investment bank has said in its first week it attracted over 50,000 customers.
This year, the Bank of England raised its base rate, used by lenders to set interest rates, from 0.5 per cent to 0.75 per cent – the second rise in over a decade.
But many banks have failed to pass on the increase to their customers, with around 30 per cent of easy access accounts paying still below this rate, according to research by Moneyfacts.
For a more comprehensive round of the top accounts on offer, see our guide to the best paying savings accounts.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516. Don't forget to join the Sun Money's Facebook group for the latest bargains and money-saving advice.
Source: Read Full Article