Savers who open their accounts in a branch of a bank are missing out on the best deals, according to research.
Just 35 per cent of the top quartile easy access savings accounts can be opened in a branch, compared with 46 per cent of the bottom quartile.
The research, conducted by Investec Bank, also showed that only 14 per cent of the top performing one year fixed rate bonds are available to open in branch, compared with 29 per cent of products in the bottom quartile.
Average interest rates of easy access savings accounts
| February 2021 | February 2022 | Increase |
Whole Market | 0.16% | 0.23% | 0.07% |
1st Quartile | 0.37% | 0.53% | 0.16% |
2nd Quartile | 0.18% | 0.26% | 0.08% |
3rd Quartile | 0.07% | 0.11% | 0.04% |
4th Quartile | 0.01% | 0.02% | 0.01% |
Source: Investec
The research was conducted by MoneyComms on behalf of Investec, and was undertaken between February 22 and 23 this year.
It comes as the gap in retail savings rates widened in the past year.
The average interest rate across all one year products has doubled to 0.88 per cent, but the rates for top quartile accounts have risen 0.74 per cent compared with a 0.04 per cent increase for those in the bottom quartile.
For easy access savings accounts, as a whole average rates have increased 0.07 per cent, but those in the top quartile rose 0.16 per cent while those in the bottom quartile nudged up 0.01 per cent.
Average interest rates for one year fixed bonds
February 2021 | February 2022 | Increase | |
Whole Market | 0.44% | 0.88% | 0.44% |
1st Quartile | 0.62% | 1.36% | 0.74% |
2nd Quartile | 0.52% | 1.14% | 0.62% |
3rd Quartile | 0.40% | 0.78% | 0.38% |
4th Quartile | 0.25% | 0.29% | 0.04% |
Source: Investec
Samantha Booysen, head of digital savings at Investec, said although many savers have seen an upturn in rates over the past 12 months, some will still be receiving a below average return.
“It’s worth checking your current rate with your savings provider to ensure you’re not missing out. A quick check of the best buy tables will help point you in the right direction.”
Andrew Hagger, founder and director, MoneyComms, said the result is that many customers are getting an increasingly poor deal.
“Competition in the market has seen best buy rates improving in the last 12 months but the best rates are available from the newer providers rather than branch-based banks on the high street.”
sally.hickey@ft.com
