The average closed easy access account rate has been lower than the live equivalent over the past two years, according to analysis by Moneyfacts.

The group has suggested that savers are being “short-changed” as Consumer Duty rules on closed products and services come into play this month.

Over the past two years, the incentive to switch from a closed savings account to a live deal has risen, with the difference between the average closed rate and live rate on easy access accounts widening from 0.08% in July 2022 to 0.31% in July 2024.

The biggest rate margin between the average easy access closed rate and live rate, where the latter is higher, was in October 2023 at 0.66% (2.52% versus 3.18%). In July last year, the margin was 0.43%, which is a difference of 0.12% compared to July 2024 (0.31%).

The biggest banks are paying less than 2% on their most flexible live savings accounts, which is lower than both the average overall live and closed easy access account rates of 3.13% and 2.82% respectively.

“Savers are being short-changed if they don’t proactively review and switch from their closed easy access accounts,” finance expert at Moneyfacts, Rachel Springall, said.

“Over the past two years, the average rate on a live easy access account has surpassed the average closed rate, despite base rate rises from the Bank of England and numerous calls for the biggest banks to improve savings rates for existing customers. Savers must shake any apathy they have to move their pots, otherwise they will be left disappointed when their loyalty is not rewarded.

“As some of the biggest high street banks pay less than 2% on their most flexible live easy access accounts, some of the top rates on the market overall pay around 5%.

“Building societies and challenger banks continue to work hard to entice new deposits and reward loyal customers so they are worth comparing against the more familiar high street brands.”

The Financial Conduct Authority (FCA) introduced Consumer Duty rules for open products and services came in July 2023, and the duty for closed products and services comes into effect on 31 July 2024. This includes easy access savings accounts which are no longer on sale to new customers.

“In the months ahead, it will be interesting to see if any savings providers pull closed savings accounts or move customers onto different products as Consumer Duty rules on closed products come into force,” Springall added.

“As the FCA’s Consumer Duty deadline for closed products nears, it is worth noting that not every institution has a closed savings account, but if they do, customers need to see if they are getting a raw deal.”

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