The APPALLING rates of interest on offer from some of the nation's biggest names have been revealed.
The dreadful interest rates offered on savings accounts by the nation’s biggest banks and building societies have been revealed, shining a light on the appalling return some savers are 'enjoying'.
The Financial Conduct Authority regulator has published the lowest interest rates offered by banks and building societies for both easy access accounts and instant access ISAs, and it makes for some dreadful reading.
For example, Danske Bank, Progressive Building Society and Ulster Bank all offer easy access deals with an interest rate of just 0.1% at the moment, while on Cash ISAs Santander offers a rate of just 0.10%.
The worst savings providers
Let’s start with easy access savings accounts. The table below details the 10 banks and building societies which offer the lowest interest rates on this type of account, for both accounts that can be opened today and accounts that are closed to new savers.
It’s important to remember that these won’t always be the only deals on offer from these providers for this type of savings account. Some will have a more competitive alternative account.
|
Provider |
Lowest rate offered on open easy access savings accounts (AER) |
Lowest rate offered on closed easy access savings accounts (AER) |
|
Danske Bank |
0.01% |
0.01% |
|
Progressive Building Society |
0.01% |
0.01% |
|
Ulster Bank |
0.01% |
0.01% |
|
First Direct |
0.05% |
0% |
|
First Trust Bank |
0.05% |
0.05% |
|
HSBC |
0.05% |
0.05% |
|
Cambridge Building Society |
0.1% |
0.1% |
|
Clydesdale Bank |
0.1% |
0.1% |
|
OneSavings Bank |
0.1% |
0.25% |
|
Principality Building Society |
0.1% |
0.1% |
|
Santander |
0.1% |
0.1% |
|
Yorkshire Bank |
0.1% |
0.1% |
Source: FCA
And now for the lowest rates offered on Cash ISAs.
|
Provider |
Lowest rate offered on open Cash ISAs (AER) |
Lowest rate offered on closed Cash ISAs (AER) |
|
Santander |
0.10% |
0.50% |
|
First Trust Bank |
0.25% |
- |
|
Danske Bank |
0.4% |
- |
|
Bank of Scotland |
0.5% |
0.1% |
|
Co-op |
0.5% |
- |
|
NatWest |
0.5% |
- |
|
Newcastle Building Society |
0.5% |
0.25% |
|
Royal Bank of Scotland |
0.5% |
- |
|
Sainsbury’s Bank |
0.5% |
- |
|
TSB |
0.5% |
0.5% |
|
Ulster Bank |
0.5% |
- |
|
West Bromwich Building Society |
0.5% |
1.25% |
Source: FCA
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Pushing savers to switch
[SPOTLIGHT]The regulator says it plans to publish this information every six months over the next 18 months, in a bid to stir savers out of their apathy and switch to better deals.
The FCA revealed other steps it is taking to secure a better return for savers. These include requiring providers to include clear information on the interest rates being paid on savings products when contacting existing savers, as well as reminding them about changes in interest rates or the end of an introductory rate. These requirements come into force from next December.
The FCA said it also wants to see seven day switching introduced to the vast majority of Cash ISA transfers from January 2017.
Christopher Woolard, director of strategy and competition at the FCA, said: “Our rules are about giving consumers the facts they need to make an informed decision about what to do with their savings, and the ability to act on it quickly.”
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