Over half of live easy access accounts paying less than base rate

Written by Adam Cadle
17/04/2018

Over half of live easy access accounts pay less than the base rate at its current level of 0.50% - which means that anyone with one of these accounts cannot even keep up with the base rate, let alone CPI inflation, according to Savings Champion.

The independent savings site said even if providers offering these accounts were to pass on the full base rate rise of 0.25%, which is anticipated in May, the rates would still not reach the paltry return of just 0.75%. And this is by no means guaranteed, with a number of providers not passing on the last base rate rise in November in full.

With rates as low as 0.05% on offer currently, from the likes of HSBC's Flexible Saver Account, even a base rate rise will not be enough to make these accounts anywhere near a competitive level.

Savings Champion director Anna Bowes said: “Some of the rates on offer at the moment are absolutely shocking and the providers that dare to call these savings accounts should hang their heads in shame.

"Even if the base rate goes up in May, these accounts will still offer paltry returns and savers must not stand for it. Much better returns are on offer right now - so make sure you shop around and move your cash and show these providers a clean pair of heels."

Bowes added: “If you are unlucky enough to be in one of the rock bottom accounts paying just 0.05%, by switching today to the best buy easy access account, you could increase the interest you are earning by 1.25% AER – five times that of a base rate rise of 0.25%.”

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