Ditch these shocking savings accounts!

If your cash is dying in one of these 234 truly terrible savings accounts, then take your money and run...

The past two and a half years have been an absolute disaster for British savers.

As the credit crunch took hold, savers queued around the block in mid-September 2007 to withdraw their cash from Northern Rock. In October 2008, the Icelandic banks collapsed, leaving 300,000 UK Icesave customers fearing for their nest eggs.

The next blow came from the Bank of England, which slashed its base rate in order to stimulate the ailing UK economy. In September 2008, the base rate stood at 5% a year. However, after six cuts in a row, it hit a historic low of 0.5% by March 2009, where it has remained ever since.

Watch our How to....save when you've got no money video

Ed Bowsher investigates great ways to save and earn some extra money!

Shocking savings rates

As the Bank cut its base rate, savings providers rushed to follow suit. Today, interest rates paid by savings accounts are at record lows. This has caused a lot of misery to those who rely on their savings for income, especially Britain’s 12 million pensioners.

Of course, with the base rate at such a low level, savers can’t expect to make bumper returns on their cash. Nevertheless, some banks and building societies have really taken the mickey by slashing rates to unbelievably low levels.

Crunching the numbers

To show you what I mean, I asked lovemoney.com partner, Moneyfacts to show me the UK’s lowest-paying savings accounts. The data that I received genuinely shocked me: it was a list of 234 accounts which pay 0.1% a year on a balance of £1,000+.

I repeat: that’s 234 truly terrible savings accounts: each paying £1 or less each year on a balance of £1,000. Once you take into account tax (at 10%, 20% or 40%) and inflation (rising prices), each of these accounts is a money-strangler.

What a waste of money

Indeed, I’d go so far as to argue that all these accounts aren’t savings accounts at all, because they kill your cash. In short, these accounts are effectively an interest-free loan from savers to banks and building societies. This is madness, pure madness.

Let’s start with the worst four, which pay no interest at all:

0% interest: four accounts

Provider	Account	Notice
Bank of China (UK)	7 Day Notice Deposit	7 days
Bank of China (UK)	30 Day Notice Deposit	30 days
Marfin Laiki Bank	Instant Access	-
Melton Mowbray BS	Offset Share	-

Paying no interest is great when you’re a borrower (I love 0% credit cards), but not when you’re a saver. Also, philosophers could argue that savings accounts which pay no interest don’t qualify as savings accounts at all...

0.001% interest: two accounts

Provider	Account
Bank of Ireland (GB)	Card Saver
Bank of Ireland (GB)	Telephone Saver

Although we’re now into positive territory, it’s nul points for Bank of Ireland (GB).

0.01% interest: five accounts

Although the next five accounts pay ten times as much interest as the two shown above, that’s not saying much:

Provider	Account
Chesham BS	Bonus Saver
Newcastle BS	Nova Plus Issue 3
Newcastle BS	Nova Star 10 (15 month bond)
Progressive BS	Investment Share
Ulster Bank	Easy Access Savings

0.04% interest: two accounts

Provider	Account
Cheltenham & Gloucester	The London
Cheltenham & Gloucester	Direct Transfer

We blow two raspberries at the C&G and move swiftly on.

0.05% interest: 48 accounts

These 48 accounts pay a pathetic 50p a year (before tax) on a balance of £1,000. There are plenty of names in this list, both big and small:

Provider	Account	Notice
Bank of Scotland	Halifax Liquid Gold (non current a/c customers), Halifax Saver Reward (non current a/c customers making 4 or more withdrawals pa)	-
Cambridge BS	Instant Sapphire	-
Cheltenham & Gloucester	The London and Direct Transfer	-
Darlington BS	Sentinel 30	30 days
Darlington BS	Instant Access	-
Derbyshire BS	Derbyshire Cash A/c	-
Dudley BS	Save and Sponsor	7 days
Dudley BS	Special Savings	28 days
First Direct	Savings	-
First Trust Bank (NI)	Select Savings	-
HSBC	Flexible Saver (Non Bank Account Plus Customers)	-
Halifax	Liquid Gold (non current a/c customers), Saver Reward (Non Current a/c customers making 4 or more withdrawals pa)	-
Hinckley & Rugby BS	High Rise	-
Hoare & Co	Deposit	-
Intelligent Finance	Direct Access Savings	-
Leeds BS	Capital 7	7 days
Manchester BS	Premier Instant	-
Progressive BS	Premium Return	-
Saffron BS	Cashbuild	-
Stroud & Swindon BS	30 Day Notice Saver	30 days
Triodos Bank	Charity Savers: Somerset & Dorset Wildlife, Housing Justice, Soil Association, Quaker Housing Trust, Amnesty International, World Development Movement Trust, Fairtrade Foundation, Medical Foundation, Friends of the Earth Trust, Western Buddhist Order	All 33 days
Triodos Bank	Triodos Saver	33, days, 90 days or 1 year
Ulster Bank	U First Savings	-
West Bromwich BS	Blues Super Saver, Oak, Albion Premier, Amber Blue Saver, Saddlers Savers, Severn Valley Saver, Premium Share, Century Saver, Direct Easy Access, Community	-
Whiteaway Laidlaw Bank	Instant Access Savings	-

To add insult to injury, these accounts pay next-to-no interest, yet tie up your money for as much as a year. What a con. Also, note the large number of building societies starting to appear, which is shameful for a sector that has been supporting savers since Victorian times.

0.08% interest: one account

Provider	Account
Turkish Bank (UK)	Basic Savings

For the full range of accounts paying interest of just 0.1% see the list at the end of this article.

Join the savers’ revolt!

In total 234 of savings accounts are a disgrace when they are so disgracefully mean and miserly. After all, by ditching and switching, smart savers can earn close to 3% a year in a Best Buy no-notice savings account.

Frankly, millions of savers are being swindled, but we won’t tolerate it any more. We want a fairer balance between borrowers and savers -- and we’re going to get it by voting with our feet. So, don’t delay -- move your cash today.

If you need more help with making the best of your savings, don't forget to ask the lovemoney.com community for help at Q&A, and join our Build up your savings goal.

Compare savings accounts with lovemoney.com

0.10% interest: 172 accounts

Now brace yourself, because here’s my longest list by far: the 172 members of “The 0.1 Percent Club”.

Provider	Account	Notice
Alliance & Leicester	Instant Access	-
Alliance & Leicester	PlusSaver	-
Bank of Ireland (NI)	Classic Saver	-
Bank of Scotland	Halifax Instant Saver (Non Current A/c customers)	-
Bank of Scotland	Halifax Saver Reward (Non Current A/c customer - Up to 3 withdrawals pa)	-
Bank of Scotland	Halifax Web Saver (Non Current A/c customers)	-
Bank of Scotland	Halifax Extra Income Saver (Non Current A/c customers)	60 days
Barclays Bank	E-savings	-
Beverley BS	Instant Access	-
Britannia	Flexible Saver/CashCard	-
Cheshire BS	Instant Access	-
Cheshire BS	Silkmen Saver	-
Cheshire BS	Caring for Children	-
Cheshire BS	Super Wolves Saver	-
Cheshire BS	Crewe Academy	-
Cheshire BS	Caring for Hospices	-
Chorley & District BS	Instant Rovers	-
City of Derry BS	Extra Instant Access	-
City of Derry BS	Access 30	30 days
Clydesdale Bank	Savings	-
Clydesdale Bank	Savings Account Plus	-
Derbyshire BS	Derby Rams	-
Derbyshire BS	The National Trust Derbyshire Savings	-
Derbyshire BS	The Owls Savings	-
Derbyshire BS	Branch Instant	-
Derbyshire BS	Ellen MacArthur Trust & Rainbows Child Hosp Online	-
Derbyshire BS	Ramsaver	-
Derbyshire BS	Mariners	-
Derbyshire BS	Stag's Saver	-
Derbyshire BS	Community Saver	-
Derbyshire BS	The Spireites Savings	-
Derbyshire BS	Ellen MacArthur Trust & Rainbows Children's Hospice	-
Dudley BS	Instant Tracker	-
Dunfermline BS	Aberdeen FC Soccer Saver	-
Dunfermline BS	Ayr FC Soccer Saver	-
Dunfermline BS	Celtic FC Soccer Saver	-
Dunfermline BS	Dundee FC Soccer Saver	-
Dunfermline BS	Dundee United FC Soccer Saver	-
Dunfermline BS	Dunfermline Athletic FC Soccer Saver	-
Dunfermline BS	Falkirk FC Soccer Saver	-
Dunfermline BS	Hamilton FC Soccer Saver	-
Dunfermline BS	Inverness Caledonian Thistle FC Soccer Saver	-
Dunfermline BS	Kilmarnock FC Soccer Saver	-
Dunfermline BS	Livingston FC Soccer Saver	-
Dunfermline BS	Partick Thistle FC Soccer Saver	-
Dunfermline BS	Queen of the South FC Soccer Saver	-
Dunfermline BS	Raith Rovers FC Soccer Saver	-
Dunfermline BS	St Johnstone FC Soccer Saver	-
Dunfermline BS	St Mirren FC Soccer Saver	-
Dunfermline BS	Fairway Saver Account	-
Dunfermline BS	Dunfermline Gold	-
Dunfermline BS	Direct Now Issue 2	-
Earl Shilton BS	Double Top	-
Earl Shilton BS	Capital 90	90 days
Earl Shilton BS	Monthly Income	90 days
HSBC	Flexible Saver (Bank Account Plus Customers)	-
HSBC	Premier Savings	-
Halifax	Extra Income Saver (Non Current A/c customers)	60 days
Halifax	Extra Income Saver (Non Current A/c customers)	60 days
Halifax	Instant Saver (Non Current A/c customers)	-
Halifax	Instant Saver (Non Current A/c customers)	-
Halifax	Saver Reward (Non Current A/c customer - Up to 3 withdrawals pa)	-
Halifax	Web Saver (Non Current A/c customers)	-
Hanley Economic BS	Instant Access	-
Hinckley & Rugby BS	Eagle Easy Access	-
Holmesdale BS	Easy Access	-
Holmesdale BS	Special Shares	60 days
Holmesdale BS	Benefit Shares	90 days
Julian Hodge Bank	Savings	-
Julian Hodge Bank	Savings	-
Julian Hodge Bank	Eight Day Notice	8 days
Julian Hodge Bank	Eight Day Notice	8 days
Julian Hodge Bank	Extra High Interest	90 days
Julian Hodge Bank	Extra High Interest	90 days
Kent Reliance BS	GFC Savings Account	-
Kent Reliance BS	Kent Spitfires	-
Kent Reliance BS	Sportsaver	-
Kent Reliance BS	Charlton Athletic Savings Account	-
Kent Reliance BS	Whitstable Town FC Savings	-
Leek United BS	Air Ambulance Account	-
Leek United BS	Pyramid 90	90 days
Leek United BS	Pyramid 90	90 days
Leek United BS	Pyramid Share	-
Loughborough BS	Instant Access	-
Marsden BS	Rainbow 40	40 days
Marsden BS	Rainbow 40	40 days
Melton Mowbray BS	Instant Access	-
Melton Mowbray BS	DLRAA Affinity	-
Monmouthshire BS	Escalator Bonus	30 days
Monmouthshire BS	Escalator Instant	-
Nationwide BS	CashBuilder Card	-
Nationwide BS	CashBuilder Book	-
Nationwide BS	e-Savings Plus (4+ withdrawals pa)	-
NatWest	Savings Direct	-
NatWest	First Reserve	-
Northern Bank (NI)	Savings Account Plus	-
Northern Bank (NI)	Summit Savings	-
Northern Bank (NI)	Midas Gold	-
Northern Bank (NI)	Midas Gold	-
Norwich & Peterborough BS	Cambridge United Account	-
Norwich & Peterborough BS	Rushden & Diamonds Account	-
Norwich & Peterborough BS	Scunthorpe United Account	-
Norwich & Peterborough BS	Cardiff City Club Savers Account	-
Norwich & Peterborough BS	Crystal Palace Club Savers Account	-
Norwich & Peterborough BS	Hull City Club Savers Account	-
Norwich & Peterborough BS	Norwich City Club Savers Account	-
Norwich & Peterborough BS	Plymouth Argyle Club Savers Account	-
Norwich & Peterborough BS	Queens Park Rangers Club Savers Account	-
Norwich & Peterborough BS	Southend United Club Savers Account	-
Norwich & Peterborough BS	Bournemouth Club Savers Account	-
Norwich & Peterborough BS	Oldham Athletic Club Savers Account	-
Norwich & Peterborough BS	Scunthorpe United Club Savers Account	-
Norwich & Peterborough BS	Yeovil Town Club Savers Account	-
Norwich & Peterborough BS	Millwall Club Savers Account	-
Norwich & Peterborough BS	Bury Club Savers Account	-
Norwich & Peterborough BS	Hereford United Club Savers Account	-
Norwich & Peterborough BS	Lincoln City Club Savers Account	-
Norwich & Peterborough BS	Peterborough United Club Saver Account	-
Norwich & Peterborough BS	Rochdale United Club Saver Account	-
Norwich & Peterborough BS	Cambridge United Club Saver Account	-
Norwich & Peterborough BS	Oxford United Club Saver Account	-
Norwich & Peterborough BS	Rushden & Diamonds Club Savers Account	-
Norwich & Peterborough BS	30 Day Notice	30 days
Norwich & Peterborough BS	30 Day Notice	30 days
Norwich & Peterborough BS	Canary Account	-
Norwich & Peterborough BS	Lincoln City Account	-
Norwich & Peterborough BS	Posh Account	-
Norwich & Peterborough BS	Easy Plus	-
Norwich & Peterborough BS	Postmaster II	-
Norwich & Peterborough BS	Postmaster II	-
Principality BS	Instant Access Savings	-
Progressive BS	Premium 90	90 days
Royal Bank of Scotland	Instant Savings Tracker	-
Royal Bank of Scotland	Telephone Saver	-
Royal Bank of Scotland	Instant Access	-
Saffron BS	Essex Air Ambulance	90 days
Saffron BS	Essex Wildlife Trust Saver	90 days
Saffron BS	each Saver	90 days
Santander	Flexible Passbook Saver	-
Scottish BS	Scotline	-
Shepshed BS	120 Day Share	120 days
Shepshed BS	Instant Access	-
Shepshed BS	28 Day Share	28 days
Shepshed BS	90 Day Share	90 days
Skipton BS	High Street	-
Skipton BS	Pilgrim Investments	-
Skipton BS	Base Rate Tracker 3	30 days
Skipton BS	Base Rate Tracker 3	30 days
Skipton BS	Sovereign Shares	-
Stroud & Swindon BS	Bath Rugby Branch Instant	-
Stroud & Swindon BS	Bath Rugby Branch Instant	-
Stroud & Swindon BS	Forest Green Rovers	-
Stroud & Swindon BS	Forest Green Rovers	-
Stroud & Swindon BS	Cotswold Care	-
Stroud & Swindon BS	Willow Trust	-
Stroud & Swindon BS	Classic Gold	-
Tipton & Coseley BS	Investment Monthly Inc	90 days
Tipton & Coseley BS	Instant Access	-
Tipton & Coseley BS	Community Saver (Beacon Centre)	-
Tipton & Coseley BS	Community Saver (Compton Hospice)	-
Tipton & Coseley BS	Community Saver (Tipton Harriers)	-
Tipton & Coseley BS	Community Saver (Tipton Town FC)	-
Turkish Bank (UK)	Easy Access Deposit	-
Virgin Money	Deposit	-
Weatherbys Bank Ltd	Private Reserve	-
Weatherbys Bank Ltd	45 Day Notice	45 days
Weatherbys Bank Ltd	90 Day Notice	90 days
Wesleyan Bank	Classic	-
Yorkshire Bank	Savings Account Plus	-
Yorkshire Bank	Instant Savings	-
Yorkshire BS	Blades	-
Yorkshire BS	Bulls	-

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