Two thirds (65%) of Brits believe that high street banks prioritise making profits over passing higher interest rates on to savers, research from SmartSave has found.

The survey of 2,000 UK adults, which was run by Chetwood Financial, revealed that 59% said their income has decreased in real terms as inflation has exceeded the interest rates offered on their savings.

As a result of the cost of living crisis, over a quarter (28%) of those surveyed said they have stopped saving entirely.

Founder and chief executive officer at SmartSave, Andy Mielczarek, said: "It is clear from this data that there is a disconnect between savers and major banks, with a sense that the high street needs to do more to support them through high inflation and cost of living pressures.

"The hikes in the base rate over recent months are a clear indicator that all savings product providers need to rise to the challenge of protecting their customers' financial health, and clearly, consumers feel that the high street has fallen short."

Over two in five (44%) respondents said they are happy with the rates on offers from their primary savings account provider, while in the past two years, 16% of respondents complained their bank had not offered improved rates on their savings.

Furthermore, 28% who responded in the survey have opened fixed-term savings accounts, with a similar number (29%) investing their savings.

Mielczarek added: "The high-inflation environment has put pressure on consumers to be proactive in searching out the best deals to protect the real-term value of their savings, and most don’t believe that the big banks have their best interests at heart. It’s not a surprise that many consumers are looking beyond the high street for better returns and more agile products.

"The loyalty penalty for savers who don’t play the field is real, and it is clear that the scales have started to fall from their eyes when it comes to the high street. Britons would do well to follow the best rates in order to safeguard their financial wellbeing, and high street banks need to see the writing on the wall if they want to win back the trust of their customers."

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