Providers offering the UK’s worst savings accounts have been named and shamed by the regulator, which published the latest data on savings rates earlier today.
Danske Bank and Ulster Bank (a Royal Bank of Scotland subsidiary) stand out for all the wrong reasons, with miserable rates as low as 0.01%, according to the third, and final, ‘sunlight remedy’ report from the Financial Conduct Authority (FCA).
This report aims to show up providers giving their customers a raw deal.
The full data set shows the lowest interest rates available from 32 providers of cash savings accounts and easy-access cash Isas, on October 1 2016.
The results don’t paint a pretty picture for savers. For example, long-standing customers at First Trust Bank, HSBC, Marks and Spencer Bank, and TSB could be earning just 0.05% on older savings accounts that have been closed to new business.
Loyal savers at Newcastle Building Society are also earning a pittance, with its worst Isa rate paying just 0.1%.
Across the board, customers with accounts that are now closed to new business are earning some of the worst interest rates, proving that loyalty rarely pays off.
Which? Money Compare table: savings accounts and Isas – hundreds of deals compared
Where can I find a decent rate?
The information published today is based on rates as at October 2016. Some providers have since closed some of the more generous savings accounts to new customers, or cut interest rates.
But, there are still decent options if you’re looking to switch, including a top cash Isa rate of 1.1% with Coventry Building Society.
Don’t rely on providers to reward your loyalty. Accounts opened a long time ago pay considerably lower interest rates than those opened more recently, so shopping around and switching accounts is the only way to secure a decent rate.
Use our savings booster tool to see how much more interest you could earn on all your savings accounts.
You should also consider keeping some of your cash in a high-interest current account. We list the top payers in this table of the best bank accounts for in-credit interest.
New measures for savings
New rules on cash savings products including Isas also come into effect today. These measures require firms to help customers make better decisions when opening accounts.
The FCA says firms must:
• provide easy-to-understand key information in a summary box to help consumers compare savings accounts
• clearly remind consumers about changes in interest rates or the end of an introductory rate
• provide a quicker and easier switching process.
Swifter Isa transfers
Next year, at least 80% of cash Isa transfers will be carried out within seven working days – that’s the new commitment from the British Bankers Association, the Building Societies Association and Tax Incentivised Savings Association.
Currently, approximately 66% of all transfers are being completed within seven days.
The industry will publish details of its performance against the target quarterly, starting in April 2017.
The FCA says it will continue to work on improving the speed of transfers and will consider the need for further regulatory intervention to improve switching.
- Find out more about your savings rights with our guide to keeping your savings safe
- Find the most profitable home for your money with our savings tables
- Get your savings queries answered by 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.