Overview
- Moneyfacts reports average easy-access rates of 1.19% at major high-street banks versus 4.12% at challenger banks, equating to a £293 annual shortfall on a £10,000 balance.
- Listed examples show big-bank offers such as Barclays at 1.05%, HSBC at 1.14%, Lloyds at 0.75%, NatWest at 1% and Santander at 2%, compared with challengers like Charter at 4.06%, Kent Reliance at 4.07%, Shawbrook at 4.05%, Spring at 4.03% and Chase at 4.41% with a bonus.
- Moneyfacts analyst Caitlyn Eastell says switching to digital challengers can raise returns because of lower overheads, with many providers covered by the Financial Services Compensation Scheme.
- Experts urge savers to confirm FSCS coverage, which protects eligible deposits up to £120,000, noting that not every challenger or platform is protected.
- Which? adviser Matthew Jenkin warns headline rates often rely on time-limited bonuses, citing Chase’s Saver at 4.5% AER including a 12‑month 2% bonus that drops to 2.5%, and cautions that matured fixed-term deposits may be moved into lower-paying accounts without instructions.