Overview
- Fresh Moneyfactscompare data shows major high street banks pay roughly 1.17–1.19% on easy-access savings versus about 4.12% at leading challenger banks.
- A saver with £10,000 would earn about £119 at a typical big bank versus £412 at a challenger, a £293 gap, rising to roughly £565 on the average £17,365 pot and up to £879 on £30,000.
- Many market-leading accounts include temporary bonus rates that can expire after around 12 months, so returns can drop quickly without active monitoring.
- Advisers say switching is quick and, because many challenger banks are covered by the FSCS up to £120,000, moving money within the limit does not add risk.
- With the Bank of England base rate now 3.75% and at least one more cut expected this year, analysts caution that some higher-paying deals may be withdrawn.