The Financial Conduct Authority (FCA) has revealed the worst providers for paying woeful savings rates.
In a study published on Monday, the regulator published the lowest interest rates offered by 32 savings account and cash Isa providers. The worst offenders were Danske Bank and Ulster Bank, which each offered savings accounts paying 0.01% AER. This means customers would earn just 10 pence a year on a £1,000 investment.
Marks & Spencer Bank and Bank of Scotland were also cited as poor value providers, offering cash Isas paying 0.05% AER and 0.1% AER respectively.
The Which? Money Compare savings and Isa tables let you search hundreds of savings accounts and Isas from providers large and small to find a great savings rate based on quality of service as well as cost and benefits.
Which Money Compare table: savings accounts and cash Isas – hundreds of accounts compared
Best Rate savings and cash Isa providers revealed
Thankfully, there are still some attractive savings deals available if you’re prepared to shop around. Here, we highlight some of the best savings deals in our Which? Money Compare tables.
For each of these deals, we’ve included links to the tables where you can find out more information. We have excluded accounts with certain qualifying conditions and restrictions on withdrawals.
Instant-access savings accounts
RCI Bank pays 1.45% AER from initial deposits of £100 on its instant-access savings account. This provider is not covered under the Financial Services Compensation Scheme, although up to 100,000 euros of your savings are protected by the French equivalent of this scheme. If you’re looking for a more well-known instant-access savings provider, Virgin Money and Tesco Bank pay 1.26% AER and 1.22% AER respectively.
Which? Money Compare table: instant-access savings accounts – our tables are updated daily
Instant-access cash Isas
The best instant-access cash Isa deal in our tables offered by Coventry Building Society, pays 1.3% AER. Coventry Building Society also deserves credit for rewarding existing customers, all of whom currently earn upwards of 1.5% AER on its closed Isa account.
Which Money Compare table: instant-access cash Isas – find a great deal
Savers will soon find it easier to find the best deal
The FCA has ruled that savings providers will have to include a ‘summary box’ on statements giving basic information on interest rates from December. This should make it easier for people to compare their savings rate with others on the market.
Additionally, the regulator is exploring the possibility of forcing savings providers to offer customers a text or email reminder service to warn them of better deals.
All rates published in the FCA’s study were correct as of April 1 2016.
- Our advice explains how to find the best cash Isa
- Discover how the new Isa rules affect you
- Your savings query answered by calling the Which? Money Helpline
Which? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited.