Press release

Building societies continue to dominate the battle for best savings rates

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.

House-chain-lending-buying-saving.jpgOver 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.