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 |
- |
More: 16 super savings accounts | Get the new top savings account