Accounts with names like ‘Halifax Liquid Gold’ and ‘NatWest Diamond Reserve’ might sound like they’re offering top interest rates to match, but they’re not. These are just two of the ten accounts Which? has found with big titles, but pitifully small rates – all paying 0.15% or less.
Halifax and NatWest are not the only banks to give low-paying accounts tempting names denoting wealth. Derbyshire Building Society and Northern Bank also have savings products which mention gold, even though they pay just 0.10%, and Santander goes ones better with its Platinum Savings Deposit.
Probably the most obviously misnamed account is Newcastle Building Society’s High/Extra High Interest Account. A more appropriate name might be the ‘extra low interest account’, as at a rate of just 0.01% it is actually the poorest paying account in our list and would give an annual return of just 10p on every £1,000 saved.
Top ten mis-named accounts
The ten most misleading savings account names we found are:
- Barclays Reward Saver
- Derbyshire BS Triple Gold
- Halifax Liquid Gold
- Lloyds TSB Incentive Saver
- NatWest Diamond Reserve
- Newcastle BS High/Extra High Interest Account
- Northern Bank (NI) Midas Gold
- Norwich & Peterborough BS Super Saver
- Santander Platinum Savings Deposit
- The Co-operative Bank Save Wise
Which? chief executive, Peter Vicary-Smith, said: ‘This is proof that all that glitters isn’t gold. It’s just embarrassing that a company can call a product “extra high interest” when, in reality, it only pays out 0.01%. Surely it’s time for banks and building societies to clean up their act and ensure that their products do what they say on the tin.’
Great British Savings Scandal
This week Which? revealed the Great British Savings Scandal. Savers are missing out on £12 billion a year because banks and building societies are keeping us in the dark about miserly interest rates, and almost half of the 1,200 plus savings accounts available in the UK pay 0.5% interest or less, and one in four pays 0.1% or less.
The Which? Savings Booster
Which? research shows the average UK saver is losing out on £322 a year in interest on their savings account and cash Isa.
Our free Savings Booster tool will show you the rate you’re currently earning on your savings and how much extra you could be getting with a Best Rate account.
Use the Savings Booster now to find out how much you can save and to set the switching ball rolling.