Sylvia Morris

How banks penalise their most loyal savings customers

Savings rates on easy access accounts have finally been creeping up, with the top rate now 1.5%. But often this rate is only available to new customers.

Banks and building societies used to pass rate rises on to all savers in variable rate accounts, but now most of them only offer a higher rate to new customers. Loyal savers continue to earn the lower rate, which in the worst cases can be as low as 0.25%.

Seven of the top 10 savings rates come with catches

Savers desperate for top rates on their easy-access savings have snapped up the 1.5% Marcus account on offer from the mighty Goldman Sachs. In the first 40 days after its launch in late September, it had clocked up no fewer than 100,000 customers.

Savings update: rates rising but investors should be wary

On easy-access accounts Shawbrook Bank Easy Saver and RCI Bank Freedom Account both pay a top 1.3 per cent. AA has raised the rate on its Members Savers to 1.3 per cent for new applicants, but the account is only available to those who are members of the organisation.

Top savings accounts come with a catch

Banks and building societies are making it hard for savers searching for top easy-access deals. They are coming out with so-called easy-access accounts with rates of 1.3 per cent – but savers often have to jump through hoops to earn this headline rate.