Banks and building societies shamed over savings and Isa rates
The financial regulator has published a list of the lowest interest rates being offered by banks and building societies right now.
The banks and building societies paying the lowest interest rates on savings accounts and Isas have been 'named and shamed' by the Financial Conduct Authority regulator.
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
[Related story: From deposits to interest rates: savings questions answered]
Pushing savers to switch
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.”
Don't put up with lousy interest rates: compare savings and Isa rates
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