If you're after an in-branch savings account with a high interest rate, make sure you don't make this dumb mistake...
If Captain Mainwaring – the fictional banker and platoon commander from the sitcom Dad’s Army – existed today, he would almost certainly be out of a job.
The modern, digitised world of banking would have no time for a slow-paced, crotchety old bank manager who enjoyed nothing more than checking up on current customers and interrogating new ones. After all, if you’re after a savings account nowadays, you won’t even need to step into a bank in order to open one up, as the majority are now handled completely online.
But there are some people who still appreciate the personal touch when it comes to managing their hard-earned savings.
So in this article I’m going to compare online savings accounts to branch-access accounts and point out the crucial mistake that you must avoid if you’re after the latter.
Easy access
Below are four of the best online savings accounts that offer easy access to your cash, the market-leading interest rate is highlighted in bold...
|
Account |
Interest rate (AER) |
Minimum deposit |
Access |
Need to know |
|
3.05% |
£1,000 |
Online |
Includes a 1.51% bonus for 12 months, only one penalty-free withdrawal per year |
|
|
3.01% |
£1,000 |
Online |
Includes a 1.50% bonus for 12 months |
|
|
3.00% |
£1 |
Online |
Includes 2.50% bonus for 12 months |
|
|
2.90% |
£1 |
Online |
Includes 1.65% bonus for 12 months |
Now compare these online account rates to the savings accounts detailed below that offer an in-branch service, again the market-leading rate is in bold...
|
Account |
Interest rate (AER) |
Minimum deposit |
Access |
Need to know |
|
3% |
£1,000 |
Branch, Post |
Includes 2.5% bonus for 12 months |
|
|
2.75% |
£10 |
Branch |
First-time buyers only |
|
|
2.5% |
£1,000 |
Branch, phone |
Includes 1.5% bonus for 12 months |
|
|
2.4% |
£1,000 |
Branch |
|
As you can see, the online rates are generally more competitive, but the gap is fairly slim with KRBS offering an in-branch savings account paying 0.05% less than the best online deal. But there is a catch. KRBS is a Kent-based building society, and hence only has a sparse smattering of branches across the South. So if you live out of this area there’s really no point in going for this account, as chances are your nearest branch will be a hefty distance away.
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The Nottingham BS and West Brom accounts have the same problem as the providers only offer branches in the East Midlands and Birmingham respectively.
Yes, it may sound like an obvious mistake to avoid; but still, it can be easy to find a high interest in-branch account, apply over the phone or online and then realise that your nearest branch is 40 minutes drive away!
Below are the best online and in-branch deals for one, two, three, and four+ year fixed rate savings accounts. If the savings provider is a regional bank or building society with limited branches, I’ve highlighted the area in which they operate in the final column. I’ve also included at least one country-wide savings provider that offers an in-branch service within each account category.
One-year fixed
Online
|
Account |
Interest rate (AER) |
Minimum deposit |
Access |
|
3.40% |
£1,000 |
Online |
|
|
3.35% |
£1 |
Online |
|
|
3.10% |
£1 |
Online |
In-branch
|
Account |
Interest rate (AER) |
Minimum deposit |
Access |
Branches |
|
3.30% |
£1 |
Branch, phone, online, post |
London and Birmingham |
|
|
3.25% |
£500 |
Branch, post |
Kent, South and SW England |
|
|
3.20% |
£100 |
Branch, online, post |
Derbyshire and Nottinghamshire |
|
|
3% |
£500 |
Branch, phone, online |
Country-wide |
Two-year fixed rate
Online
|
Account |
Interest rate (AER) |
Minimum deposit |
Access |
|
3.85% |
£1 |
Online |
|
|
3.80% |
£1 |
Online |
|
|
3.85% |
£5,000 |
Online |
In-branch
|
Account |
Interest rate (AER) |
Minimum deposit |
Access |
Branches |
|
3.95% |
£100 |
Branch, post |
Cheshire, Merseyside and Manchester |
|
|
3.95% |
£100 |
Branch, online, post |
Derbyshire and Nottinghamshire |
|
|
3.95% |
£100 |
Branch, phone, post |
Dunfermline, Scotland |
|
|
3.51% |
£500 |
Branch, phone, online |
Country-wide |
Three-year fixed rate
Online
|
Account |
Interest rate (AER) |
Minimum deposit |
Access |
|
4.20% |
£1 |
Online |
|
|
4.05% |
£1,000 |
Online |
|
|
4% |
£2,000 |
Online |
In-branch
|
Account |
Interest rate (AER) |
Minimum deposit |
Access |
Branches |
|
4.25% |
£1 |
Branch, phone, online, post |
London and Birmingham |
|
|
4.25% |
£1 |
Branch, post |
London, Birmingham, Manchester, Bradford and Glasgow |
|
|
4% |
£2,000 |
Branch, phone |
Concentrated in North England and Midlands (one branch in London) |
|
|
4.20% |
£1 |
Branch |
Country-wide |
Four-year fixed rate and over
Online
|
Account |
Interest rate (AER) |
Minimum deposit |
Access |
|
4.25% |
£2,000 |
Online |
|
|
5.00% |
£1 |
Online |
|
|
5.05% |
£1 |
Online |
In-branch
|
Account |
Interest rate (AER) |
Minimum deposit |
Access |
Branches |
|
4.31% |
£1,000 |
Branch |
Birmingham |
|
|
4.35% |
£1,000 |
Branch, post |
Melton Mowbray, Oakham and Grantham |
|
|
4.5% |
£500 |
Branch, post |
Northern Ireland |
|
|
4.5% |
£500 |
Branch, post |
Wales and the Borders |
As you can see, as the fixed term lengthens the regional providers seem to come into their own, offering in-branch interest rates that are usually higher than their online competitors. The two and three-year fixed term interest rates are particularly competitive as the in-branch market-leading accounts actually offer a higher return than the online deals.
Bank of Cyprus’ three year fixed term bond offers a 4.25% rate as well as in-branch service. However this bank only has four branches; three in London and one in Birmingham. So if you don’t live in either of these cities, you should probably opt for a different deal.
In terms of two year fixed term accounts that are accessible in-branch, your options are slightly wider – as long as you live in the East Midlands, North England or Scotland that is – with Cheshire, Derbyshire and Dunfermline building societies all offering a market-leading 3.95%.
But as I mentioned earlier, if you do notice an attractive savings rate with a regional provider always check where their branches are before taking out the account. In fact, with many country-wide banks and building societies cutting costs left, right and centre, it’s worth checking where your local branch is before taking out any account.
What do you think?
Do you miss the personal touch of bank? Or is it easier and quicker to manage savings online?
Let us know in the comment box below.
More: Compare savings accounts with lovemoney.com | 3pm on a Tuesday is the time to save! | Beat inflation with this savings account