High street banks offering meagre savings rates bottom of the pile in new Which? account rankings

The consumer champion’s survey of over 4,500 respondents was used to give 37 providers a customer score and ratings in areas including customer service, communication and the quality of their banking app. Providers with higher customer scores were more likely to have their service recommended. 

Using data provided by MoneyFactsCompare, Which? experts also compared savings interest rates on more than 5,000 accounts from 120 providers over a 12-week period. This was used to form an interest rate score out of 100.  Providers that finished at the top of the table may not be familiar to many consumers, but scored well and claimed the coveted Which? Recommended Provider (WRP) endorsement. WRP status was earned through a combination of highly satisfied customers and consistently close-to-market-leading rates.

All providers in the analysis are also backed by the Financial Services Compensation Scheme, which protects customers’ money should authorised firms fail. 

App-based provider Moneybox, which was established in 2016, topped the table for customer scores with a customer score of 83 per cent and a maximum five stars for its app. Moneybox also scored 83 per cent for interest rates.

Zopa scored a whopping 92 per cent for its interest rates. The British online bank is relatively new to the market, having expanded from peer-to-peer lending to banking in 2020.

Other WRPs were Marcus by Goldman Sachs and Yorkshire Building Society. Marcus posted an impressive customer score of 79 per cent and its interest rates received a rating of 86 per cent. Yorkshire Building Society’s customer score was 77 per cent and its interest rate score was 88 per cent. 

Two other providers – Kent Reliance and Leeds Building Society – also offered competitive rates, both receiving an interest rate score of 91 per cent, but did not have high enough customer scores to be considered a WRP. Building societies and digital providers dominate the first half of the table for customer score, while some of the most well-known names on the market, including Barclays, Bank of Scotland and 

HSBC, languish near the bottom of the pile. Nationwide aside, none of the UK’s biggest banks made it into the top 20.HSBC’s interest rates score was a measly 39 per cent - the second lowest score in the analysis. Barclays, Bank of Scotland and HSBC could only muster customer scores of 66 per cent, 65 per cent and 64 per cent respectively - some way off the pace set by digital banks and building societies. 

The average rates offered by Zopa, Marcus by Goldman Sachs and Yorkshire Building Society on an instant savings account were 4.44%, 4.45% and 4.91% respectively. By contrast, rates offered by HSBC, Bank of Scotland and Barclays were 2%, 1.8% and 1.6%.

Focusing entirely on high interest rates may not pay off for savers, however.For example, some providers offer very attractive rates, but fall down on the customer score. 

Bank of London & The Middle East and Cahoot were among the best for rates, but failed to replicate this success in our customer survey. 

Following the Bank of England’s decision to reduce interest rates last week, savers may find the rates they receive on instant-access accounts are cut. Those with accounts with more traditional high street names may want to consider switching to make their money work harder.

The consumer champion also analysed the best current account providers, where it was a similar story of digital banks besting more traditional high street names. First Direct, Monzo and Starling Bank were all named WRPs. 

Sam Richardson, Deputy Editor of Which? Money, said:

“High street banks continue to lag behind digital banks and building societies - not just on the competitiveness of interest rates offered but also how happy their customers are. 

“Some of the top-performing providers in our analysis may not be familiar to consumers, but they have been rigorously analysed and all are backed by the Financial Services Compensation Scheme, which means customers’ money will be protected should authorised firms fail. 

“With interest rates starting to come down, savers may want to consider switching providers to a more competitive rate. As our analysis shows, loyalty is seldom rewarded and, if you’re with a high street name, now could be the time to move your money.”

 -ENDS- 

Notes to Editors 

The savings account results are based on an online survey of 4,524 members of the public conducted in August-September 2024. The customer score is based on satisfaction with the brand and likelihood to recommend. Sample sizes in brackets. ‘-’ means not enough responses to include a star rating. The interest rate score is based on analysis of Moneyfacts data collected weekly, between 24 June 2024 and 9 September 2024. An interest rate score of 100 represents the market leading rate.

About Which?

Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen. As an organisation we’re not for profit and all for making consumers more powerful.

The information in this press release is for editorial use by journalists and media outlets only. Any business seeking to reproduce information in this release should contact the Which? Endorsement Scheme team at endorsementscheme@which.co.uk.