Barclays, National Savings & Investments (NS&I), Allied Irish Bank and Citibank UK are offering a measly 0.01 percent interest on their easy access accounts. But the good news is it’s possible to get 300 times more interest.
The Bank of England increased the base rate to 1.25 percent from one percent in May, the highest it’s been since 2009.
Four well known banks are failing to pass Bank of England interest rate rises onto savers meaning their customers are getting a raw deal.
A saver with £10,000 in an easy access account paying 0.01 percent would make just £1 of interest over 12 months, the Telegraph reports.
Sarah Coles, Senior Finance Analyst at Hargreaves Lansdown, said: “The biggest issue is banks have so much cash at the moment after so many people deposited savings during lockdowns, and while it remains that way they have no incentive to increase rates.
“So savers really can’t be lulled into a false sense of hope, they really need to move for a better rate.”
Spokespeople for Barclays and NS&I said they were currently reviewing their savings rates.
While there are no savings accounts that come close to matching current inflation levels of nine percent, there are better savings options out there.
Martin Lewis recently told Britons: “The best easy access savings account right now is with Chase Bank which pays 1.5 percent.
“You can fix for a year at over two percent – that’s the first time since 2019 you’ve been able to get rates above two percent – you can get a two year fix at 2.5 percent.”
Another option is Santander’s 123 Regular e-Saver which now offers those looking to build their savings pot an attractive rate of 2.5 percent interest but only for the first 12 months.
Santander customers also receive up to three percent cashback on selected household bills, capped at £5 in each cashback tier each month.
NatWest customers can receive up to 3.25 percent interest on savings but only on savings up to £1,000.
Meanwhile, a new savings account offering 2.55 percent interest has recently been chosen as one of this week’s top picks by experts at Moneyfacts.
Moneyfacts said the account from Ahli United Bank is an “excellent” option for people if they can afford to lock away their savings for a year.
To open an account savers will need to invest at least £1,000, while the maximum amount they can earn this interest on is £85,000.