The cost of savings loyalty: are you missing out on hundreds?

Three in 10 Which? members told us they haven't switched accounts in the past five years – and staying put could mean missing out on hundreds of pounds in interest. 

During that time, the average instant-access savings rate has risen to 15 times what it was in June 2021.

Here, we look at how much loyalty could cost, why many savers don't switch, and I explain how I manage my own savings to stay on top of changing rates.

A third of savers haven't switched since 2021

While the majority of those we surveyed* through our Which? Connect panel have moved their nest egg to another account at least once, 29% told us they haven't switched savings accounts since 2021. 

Savers who haven’t moved their money could be missing out on big returns, thanks to soaring interest rates since the end of the pandemic. 

This chart shows how average interest on an instant-access account, one-year fixed bond, and bonds lasting more than one year have changed over the past five years:

• Find out more: Best savings accounts

Why now is a great time to shop around

While rates on all types of savings account have been steadily dropping since the end of 2023, they are now climbing again.

Instant-access savings rates have seen their biggest monthly increase since October 2023, with Moneyfacts data showing they rose to 2.53% on 1 August. That's the highest level in almost a year.

Average one-year fixed savings rates also hit a high at the beginning of this month, climbing to 4.23%. That's the best since November 2024. Longer-term fixed rates also rose to 4.25% – their strongest in more than two years.

Cash Isa rates have risen too. The best instant-access product that lets you transfer your tax-free pots from another account paid 1% in July 2021. The top rate now is 4.66%. For a one-year cash Isa, the best rate has gone from 0.71% to 4.67%.

The choice of savings deal in August is also booming, hitting record levels for the sixth month running. Moneyfacts data shows there are 2,617 savings accounts available to open, excluding Isas. That's the highest number since Moneyfacts' records began in 2007.

• Find out more: What are the different types of savings accounts?

How much could you gain by switching?

Interest rates can change quickly, so it's worth checking whether your savings are still earning a competitive return. 

We looked at three examples to see what staying put could mean for your returns.

Sticking with one provider

Instant-access rates can fall fast

High street savings rates lag behind

How today's top savings deals compare

The table shows the top rates currently available for instant-access and fixed-rate savings accounts and cash Isas, ordered by term.

Compare savings accounts

Find the right savings account for you using the service provided by Experian Ltd

Compare and choose

Why do so many savers stay put?

A total of £338bn is sitting in just over 51m savings accounts earning a paltry 1.5% or less in interest, research from Paragon Bank shows. So what is holding so many savers back from switching to a better rate?

There are several reasons why savers may choose not to move their money. Some prefer to stick with brands they know and trust, while others simply don't realise that the interest rate on their account has fallen.

Caitlyn Eastell, personal finance analyst at Moneyfacts, says savings accounts can easily become what she calls a 'set and forget' product.

That can make a big difference to your returns. The market-leading easy-access account from LemFi, for example, pays 5% AER for the first six months, before reverting to 3.04% AER once its bonus ends.

A saver with £10,000 would earn around £250 during the introductory period but only around £152 over the following six months if they left their money in the account after the bonus expired.

How to switch your account

There’s no switching service for savings accounts, so if you want to move your money, you’ll usually need to open a new account yourself and transfer the funds. 

That's different from current accounts, where the Current Account Switching Service (CASS) can move your balance, direct debits and standing orders. 

Isas also have a switching service of sorts. Isa transfers must be handled between providers to keep the tax-free status of your money.

key information

Is it time for a savings switching service?

We asked UK Finance why there isn't a dedicated savings switching service. Its director of personal banking, Peter Tyler, said current accounts have a stronger case because they're linked to salaries and bills. Savings accounts come with different terms and conditions, making transfers more complex.

Charlene Young, senior pensions and savings expert at AJ Bell, said a dedicated switching service could make it easier for consumers to move their money when better deals become available. She also believes that more reminders from banks could encourage savers to review their accounts when introductory rates expire.

She said: 'Although brilliant comparison sites already exist, it would be great for consumers if we could build upon the open banking structure to make it easier for them to compare rates and easily transfer. 

'More active nudges through apps and online banking would also help them take action to check and potentially move their savings where promotional rates have expired.'

'How I split my savings to stay one step ahead'

Matthew Jenkin, Which? savings expert, says:

'I recently let a one-year fixed cash Isa mature and roll into a ‘holding account’ – these kick in when you don’t tell your provider what to do next, and they often pay miserable rates. It’s like chucking your money in a cupboard and leaving it to gather dust. The interest on mine plunged from 4% to 1%.

'In my defence, I usually do better. I track a patchwork of instant-access accounts, fixed-term bonds and cash Isas, moving money when rates change. This typically pays off, but sadly, this account slipped through the cracks. 

'To make sure you don’t drop the ball, try using a savings platform. 85% of those in our survey had never used one. But savings platforms such as Raisin and Aviva Save let you open and switch between several accounts through a single login, without having to complete a fresh application every time. Some even offer exclusive deals and send alerts when a better rate appears.

'To go a step further, try the ‘staircase strategy’ or laddering. Instead of locking all your money away for one long term, you spread it across accounts that mature one ‘step’ or ‘rung’ at a time. 

'You might split a lump sum across one-year, two-year, three-year, four-year and five-year fixes. Amounts don’t need to be equal: the mix should reflect what you’re comfortable tying up and when you might need the money. Shop around for the best rates, whether you want easy-access or fixed-term accounts. 

'Done well, the strategy gives you the best of both worlds. You’ll have savings coming up for renewal regularly, enabling you to take advantage of higher rates, while longer-term fixes help protect part of your nest egg if rates start to fall.'

• Find out more: Should you try the savings 'ladder' trend?

*Our findings are based on an online survey of 1,096 Which? Connect panel members, conducted in June 2026.