Savers £2.3 billion better off with building societies over last three years

People saving with building societies earned £920 million in additional interest on their savings in 2018 than if they had earned the average interest rates paid by large Monetary Financial Institutions, a group mainly comprising the big banks.

People saving with building societies earned £920 million in additional interest on their savings in 2018 than if they had earned the average interest rates paid by large Monetary Financial Institutions, a group mainly comprising the big banks.

This means that since 2016 building society savers have benefited by a total of over £2.3 billion in additional interest, compared to what they would have received on the average interest rates offered by the major banks.

Longstanding customers better offSaving-money-jar-pennies.jpg

These figures are based on the average interest rates on the total stock of outstanding savings deposits, so indicate that savers with building societies were getting a better deal than they would have got at banks, even if they are longstanding customers.

Effective interest rates

The BSA collated interest rate data from building societies on the same basis as the Bank of England does for its Effective Interest Rates series.

The average rate offered by building societies in 2018 on so-called time deposits (including fixed rate, notice accounts and Cash ISAs) was 1.26%, compared to 0.91% at Monetary Financial Institutions.

On sight deposit accounts, where savings can be withdrawn on demand without penalty, the average rate was 0.89% at building societies, compared to 0.47% at Monetary Financial Institutions (within which, current accounts had an average effective rate of 0.45% in 2018). By way of comparison, the official Bank Rate increased from 0.50% to 0.75% in early August 2018, so averaged 0.60% across the year.

 

Sight deposits

Time deposits

 

BoE effective rates

Building societies

BoE effective rates

Building societies

Period average

MFIs

MFIs

2016

0.65

0.88

1.29

1.58

2017

0.37

0.70

0.90

1.23

2018

0.47

0.89

0.91

1.26

 

 

Notes for information

 

You may also be interested in...

BSA Card
  • BSA.Event Event
  • People

Women's Leadership Programme - "The Becoming Journey®"

Taking place between 12 Sept. - 3 Dec. 2025

BSA Card
  • BSA.PressRelease Press Release
  • Mortgages & Housing

PRA announces review of the Loan to Income flow limit rule

The Building Societies Association (BSA) welcomes news that the PRA is reviewing the Loan to Income (LTI) flow limit rule

BSA Card
  • BSA.PressRelease Press Release
  • Savings

Open letter to the Chancellor to save Cash ISAs

Open letter to the Chancellor highlighting the importance of retaining the Cash ISA limit

  • BSA.IndustryPublication Research & Reports
  • Mortgages & Housing

BSA Yearbook 2024- 2025

The BSA Yearbook is the official handbook of the Building Societies Association, with member and associate listings and all of the latest statistics f...

BSA Card
  • BSA.Event Event
  • Prudential Regulation

An introduction to treasury management

Due to popular demand, we now offer three tiers of treasury management training for BSA Members, Associates and Non-members. The courses will be repea...

BSA Card
  • BSA.Event Event
  • Prudential Regulation

Treasury risk and balance sheet management

Due to popular demand, we now offer three tiers of treasury management training for BSA Members, Associates and Non-members. The courses will be repea...