Originally published by Savings Champion. Read the full article here.
Independent research from Savings Champion revealed that building societies continue to outperform banks when it comes to savings.
Over 73% of building society accounts pay a higher interest rate than the base rate, compared to only 54% of accounts held with banks.
There are other key areas in which building societies are outshining banks. For instance, over five years, the average rate for a live variable account from a bank has dropped by more than double the average for live building society accounts.
We have also seen that the average variable rate from a bank has dropped by over 6% more than the average building society rate over the last six years. And that for the last 12 months, building societies paid their customers 0.92% on average, compared to just 0.69% paid by banks.
The Bank of England base rate remains at 0.50% - a low level that many savers would expect the return on their savings accounts to beat.
Despite this expectation, significantly more building society accounts (73%) pay a higher rate than the base rate, compared just over half of accounts from banks (54%).
And low rates are not just to be found in providers' back-books. Over five years, the average rate for an available to open variable account from a bank has dropped by more than double the average for live building society accounts - a 36% drop, as opposed to 17%.
Read the full Savings Champion article here.