Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

A Beacon of Hope in UK Savings Market

Personal_Finance / Stock Markets 2016 Jun 06, 2016 - 02:01 PM GMT

By: MoneyFacts


Thanks to dismal savings rates, savers can be forgiven for thinking that there is little to gain from switching savings accounts away from familiar high street providers. However, research from can reveal that this is not the case and that savers would actually be able achieve far better rates of return from the newer kids on the block.

Charlotte Nelson, Finance Expert at, said:        

“Despite savings rates falling across the board, challenger banks continue to trump their high street competitors and maintain their hold on the best buy tables. Indeed, the worst easy access account offered by high street providers now pays just 0.05%, so it’s not surprising that the average easy access account offered by high street banks pays a significant 0.48% less than the average rate paid by challengers.

“The slow desertion of some of the UK’s most well-known brands from the best buy charts is shocking and has significantly impacted savers’ returns as a result. It all boils down to the fact that these providers simply do not need savers’ money to fund their borrowing. However, as challenger banks are still relative newcomers to the market they need to get savers’ attention, and the best way to do that is by offering attractive savings rates.

“One of the biggest hurdles challenger banks face is getting savers to trust their brand. But there really isn’t any reason to fear the unfamiliar for the majority of challenger banks have a UK banking licence and some have already become well-established.

“High street providers are using savers’ reluctance to switch accounts to their advantage and are backing away from active competition. However, savers should vote with their feet and opt for better rates provided by challengers. For instance, the best two-year fixed rate bond from a high street provider pays just 1.25% yearly, but savers could earn 2.20% by opting for a challenger brand.

 “In today’s dismal savings landscape challenger banks offer savers a beacon of hope and the opportunity to secure a market-leading deal. And with loyalty no longer being rewarded by more familiar providers, now is the time for savers to muster the will to reject poor returns and change account.”

*’High street providers’ refers to the biggest providers on the market with the largest number of branches (Bank of Scotland, Barclays, Halifax, HSBC, Lloyds Bank, Nationwide Building Society, NatWest, Royal Bank of Scotland and Santander). - The Money Search Engine is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in