Earn More Interest By Checking Bank Account Interest Rates
Published / Last Updated on 04/07/2023
Some of you may be aware in the news that politicians have been taking big banking groups to task over not passing recent interest rate increases to savers and only increasing mortgage borrowing rates. In fact, bosses at Barclays, HSBC, Lloyds and NatWest have been called to a meeting with the Financial Conduct Authority tomorrow, Thursday 5th July.
The owner/directors of the FinancialAdvice.net decided to have a look at our own bank accounts yesterday, as we too can be guilty of not keeping ‘on top’ of our own finances when we are so busy looking after yours.
The directors personally have built up some funds held in savings accounts (with a subsidiary brand of one of the above big 4) ready to invest in property and found that:
- The current account no longer pays a monthly bonus when you had paid in certain amounts each month.
- The current account pays 0% interest.
- The ‘easy’ account pays 0% interest.
- The instant savings account pays just 0.95% pa.
Needless to say, the owner/directors were shocked that no benefit of interest rate increases whatsoever had been passed to them and interest rates remained at ‘pandemic’ levels when Bank of England base rates fell to just 0.1% pa.
In 5 minutes, a search had been completed on one of the many comparison websites with accounts found as follows:
- Instant access, interest paid monthly at 4.21% pa.
- 1 year access, interest paid monthly at 5.79% pa.
- 2 year access, interest paid at a ‘whopping’ 5.95% pa.
On £10,000 savings that’s over £50pm (£600 pa) interest payable and on £50,000 that’s over £3,000 pa interest payable.
Conclusion
Big banks rely on client inertia i.e., you do nothing. We repeat earn more interest by checking bank account interest rates and switching to more competitive rates.
