Savings accounts for existing customers not always the best deal Go compare with our comparison table

Savings accounts for existing customers not always the best deal

26 October 2010 / by Rachael Stiles

Loyalty does not always pay when it comes to finding the best savings account deal, according to moneysupermarket.com.

Market research by the comparison website shows that while savings account providers often tempt existing customers to keep their savings with the same bank, exclusive offers do not always provide the best interest rates on the market.

Customers should be wary of going with 'existing customers only' deals, moneysupermarket.com says, which might seem like the easy option, and a better rate than that offered to new customers, but they might still find better returns elsewhere.

Not only should consumers shop around to find the best savings rate, but they should continue to check rates regularly to ensure that they are getting "as much bang for their buck" as they can while interest rates remain low.

Moneysupermarket counsels savers that it does not take a lot of effort to find the best savings account, but that the rewards can be significant, and that if they have debts then they can use the higher returns from their savings to repay their debts faster.

For example, some providers are offering their existing customers 'exclusive' rates of around 2.00 per cent on instant access savings accounts, the analysis shows, but by shopping around, savers could get a market leading 2.90 per cent with the Post Office Online Saver.

Commenting, Kevin Mountford, head of banking at moneysupermarket.com said: "There is a misconception amongst consumers that they will get preferential deals from their current provider when taking out a new financial product. However, a brief look across the high street banks reveals that it is very much a case of swings and roundabouts, with no single provider offering best buys across the board."

Savers need to be 'scouring the market place' he said, to seek out the most competitive deals from other banks and building societies.

"It's understandable that people want to keep their finances simple and the convenience of doing all their banking with one provider is often more important to them than securing the market leading rate for a loan or credit card.

"For others, they prefer the service provided by their bank but it still amazes me how many people are dissatisfied with their bank, but still remain loyal. Banks rely on this apathy from their customers and during this difficult economic period, consumers need to be generating as much value from their money as possible."

© Fair Investment Company Ltd
 

ProviderAccountInterest Rate (AER)TermApply
3.17%Easy AccessApply Now >
Up to 3.17% AER (including 1.62% gross p.a. bonus for 12 months when you save £25,000 or more) Open with £1,000. Easy access, with 1 free withdrawal per year.
3.10%Instant AccessApply Now >
3.10% AER variable (3.06% gross p.a.) including a fixed bonus of 2.56% gross p.a. for 12 months from account opening. After 12 months the rate will revert to the standard variable rate.
3.06%Easy AccessApply Now >
3.06% gross/AER variable including 12 month fixed bonus of 2.06% paid until 30th June 2013. £1,000 minimum opening balance. Easy access. Online management.
3.01%Instant AccessApply Now >
Rate includes a 1.36% gross/AER fixed interest bonus for the first 12 months. Monthly interest available. Unlimited free withdrawals. Open with £1.
2.80%Easy AccessApply Now >
Includes a 0.89% bonus payment for the 1st 12 months giving you a return of 2.80% AER. Open with £1,000.
up to
2.50%
Instant AccessApply Now >
Earn tiered rates of up to 2.50% Gross/AER when you save £500 or more. Open with £1. Unlimited withdrawals. Save up to £1,000 each month.
1.51%Instant AccessApply Now >
From 0.6% - 2.01% with 12 month bonus.
0.75%Instant AccessApply Now >
0.75% including a 0.50% bonus on months where you don't make a withdrawal. Rate without bonus is 0.25%.
1.60%Instant accessApply Now >
1.60 AER/Gross variable. This rate includes a fixed introductory bonus of 1.50% AER for the first 12 months.
2.50%Instant accessApply Now >
Existing customers only. 2.50% AER/Gross (variable) on balances of £10,000 or more or 1.60% AER/Gross from £1 to £10,000. These rates include a fixed introductory bonus of 1.50% AER for the first 12 months.