“Also if you don’t need a physical branch to walk into, you might want to consider an online bank. However, review whether they provide a simple online experience, have a good customer service rating and can be contacted quickly and easily when it suits you, for example by phone or webchat.”
Watch out for bonus rates
Bonus rates can be very appealing and draw in new customers, however, Mr Williams issued a warning when it comes to these offers.
“When you sign up for a new account, some banks might offer you an introductory rate at a higher return, but this often has a time limit,” he said.
“Once the higher rate period has ended, you’ll often find that the rate drops significantly, and you’re left with a lower overall return than you would have with providers that give a consistent rate.
“If you were offered 0.8 percent on a savings pot of £50,000 for one year and then 0.2 percent after, you would end up with £50,640 over five years, whereas if you chose a bank at half the rate (0.4 percent) that was consistent for example, you would end up with £50,800 over the same period of time.”