It’s been a couple of months since the high street banks were hauled in front of the financial regulator to explain why they weren’t passing on rate rises to savers as quickly as they were to borrowers.
Harriett Baldwin, who chairs the Treasury Select Committee, said: “The time for weak excuses is over.”
The big banks – including Lloyds, Halifax, Barclays, Natwest and HSBC – were pushed to justify why their easy-access savings rates have remained very low, while the cost of loans and mortgages has soared.
Now, we reveal they are STILL offering measly savings rates, ranging from 1.40 to 1.75 per cent. That’s despite the Bank of England base rate rising to 5.25 per cent.
Here we expose some of the lowest-paying savings accounts out there. You probably won’t be shocked to discover that these are some of the same worst offenders for funding climate change.
We also highlight the top-paying accounts from providers that treat their customers and the planet fairly (because so often the two go hand-in-hand). In comparison, these providers are offering easy access savings rates of 3.80 to 5 per cent.
Take a look at what a difference this makes:
Lowest-paying savings accounts
1. Lloyds Bank
Easy Saver – 1.40 per cent AER/gross/variable (up from 0.90 per cent in July)
The interest you get with the Lloyds Easy Saver accounts depends on your balance. If you have between £1 and £24,999 in savings then you will only see a rate of 1.40 per cent.
Those with a balance of £25,000 and a whopping £99,999 get a slightly better rate of 1.45 per cent and pots over £100,000 attract the best rate of only 1.90 per cent.
If you have savings of £1,000 over the course of a year you will make £14 in interest, those with £25,000 will make £362.50 in interest and Brits with a savings pot of £100,000 will make £1,900.
Although this may sound like a lot, if you had a bank account with a 5.25 per cent interest rate – matching the current base rate – then you could make £5250.
2. Halifax (now part of Lloyds Banking Group)
Everyday Saver – 1.45 per cent AER/gross/variable (up from 0.95 per cent in July)
Another account with an interest rate that varies according to your balance. Halifax pays just 1.45 per cent on balances up to £9,999.
Savings pots between £10,000 and £49,999 get a rate of 1.50 per cent while those over £50,000 can expect 1.8 per cent.
With £1,000 saved over a year, you’d earn £14.50, those with £25,000 would make £375 and a pot of £100,000 would earn you £1,800.
Everyday Saver – 1.66 per cent AER/gross/variable (up from one per cent in July)
The Everyday Saver account from Barclays might seem generous compared to Lloyds at a whole one per cent, but the 0.26 percentage point difference won’t add much to your savings pot.
If you had a pot of £1,000 in there then you would only make around £16.60 in interest over the course of one year. £25,000 would get you £415 while £100,000 would earn you £1,660.
Flexible Saver – 1.75 per cent AER/variable (up from 1.11 per cent in July)
Like Lloyds and Halifax, this account also offers a higher interest rate to the bigger savings pots.
For savings up to £24,999 you can get an interest rate of 1.75 per cent, and up to a massive £99,999 it’s 2.25 per cent. Balances up to £250,000 get 2.70 per cent and over this it’s 3.30 per cent.
So, a balance of £1,000 over one year would earn you £17, £25,000 would make £562.50, and £100,000 would add £3,300.
Flexible Saver – 2 per cent AER/variable(up from 1.75 per cent in July)
The Flexible Saver from HSBC offers just two per cent interest on balances of any amount.
Therefore a balance of £1,000 over one year would earn you £20, £25,000 would be £500, and £100,000 would make £2,000.
Top-paying ethical savings accounts
For a fair comparison, these are all easy access accounts.
1. Tandem Bank
Easy Access – 5 per cent/gross/AER – with ‘top-up rate’ – you need to manually apply this, but it’s the click of a button. (Up from 4.10 per cent in July)
There is no minimum deposit on this account paying 5 per cent. After a year of saving £1,000, you would earn you £50. £25,000 would earn £1,250 and £100,000 would make a healthy £5,000.
2. Leeds Building Society
Limited Issue Online Access Account – 4.75 per cent/gross/AER/variable (up from 4.20 per cent in July)
Minimum deposit on this account is £1,000. If you kept your pot at £1,000, after a year you would have made £47.50 in interest.
£25,000 would make £1,187.50 and £100,000 would earn you £4,750.
3. Raisin UK
Castle Community Bank Easy Access – 4.51 per cent/gross/AER/variable (up from 4.17 in July)
Castle Community Bank offers its Easy Access account through comparison site Raisin with an interest rate of 4.51 per cent. The minimum deposit is £1,000. You can top up your account with the minimum amount of £500 per transaction and the maximum balance you can have is £85,000.
If you kept your pot at £1,000 then you would make £45.10 in interest over the course of one year. For £25,000 it’s £1,127.50 and for £100,000 it’s £4510.
4. Yorkshire Building Society
Internet Saver Plus Issue 13 – 4.45 per cent/gross/AER/variable (account was unavailable in July)
Online access only, minimum deposit £1. Unlimited withdrawals allowed. Saving £1,000 over one year would reward you with £44,50, £25,000 would be £1,112.50 and £100,000 would earn you £4,450.
5. Skipton Building Society
Easy Access Saver – 3.80 per cent/gross/AER/variable (up from 3.60 per cent in July)
The minimum deposit on this account is just £1 and interest is 3.80 per cent – so on £1,000 over one year you’d make £38 in interest. On £25,000 you’d make £950 and £100,000 would get you £3800.
So what are you waiting for? Make a good move for yourself and the planet and switch your savings!
Remember if you don’t need your savings for at least five years, you should consider investing as you’re likely to attract higher returns in the long term. Unlike saving, when you invest your capital is at risk.