The increasing number of savings accounts with no branch access has coincided with the providers that offer online management rising sharply.
Over two-thirds (69%) offer online access, compared to just over half (54%) which did so in 2014 and 60% in 2019, according to research from Moneyfacts.
Despite the rapid rate of branch closures – almost 200 are set to close this year – over a fifth of UK customers still prefer the face-to-face service a local bank provides. A study from Yorkshire Building Society also found over a quarter visit their local branch at least once a month.
With a sizeable amount of savers relying on their local bank to manage their finances, there is a danger they are missing out on the best rates that feature with providers who offer only online or app-only deals.
The ever-growing number of online-only deals means a disparity in the best accounts for branch-only customers has crept into the market.
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High street bank customers ‘sacrificing interest they earn on their savings’
Rachel Springall, finance expert at Moneyfacts, said: “Those savers who prefer to manage their account in a branch and save their money with one of the biggest high street banks will be sacrificing the interest they earn on their savings. Indeed, savers could be earning as little as 1%, or on average 3%, but in fact, they could earn around 5% on the top easy access accounts.”
“Older savers might prefer to manage their finances in a branch for accessibility reasons, but it is clear to see how they could be missing out on a better return if they are not able to manage an account online. A saver earning just 1% for a year on a £20,000 pot would take home £200 in interest, whereas earning 5% would result in £1,000.”
The top rate available from the biggest high street banks is with Halifax’s Reward Bonus Silver account, priced at 4.12% gross variable (if you make three or fewer withdrawals in 12 months).
When compared to the top market rate overall – the Loyalty Saver account from Ulster Bank ( 5.20% AER) – there is over a 1% earning difference savers are missing out on.
The finance expert suggested that “it will be more time-efficient for savers to shop around online to find the best interest rates.”
Springall added: “Consumers concerned about the loss of their local branches would be wise to speak to their provider to discuss other locations or consider moving their accounts to an alternative brand that can cater to their day-to-day banking needs.”
For the leading rates across the easy access, fixed bond, and notice sectors read our weekly savings update.
Savings market for new customers
| Easy access accounts | Jan-14 | Jan-19 | Jan-23 | Now |
| % of deals without branch access | 29% | 33% | 37% | 40% |
| Top rate from one of the biggest high street banks which offers branch access £10,000 gross | Halifax – 1.00% | TSB – 0.50% | HSBC – 2.96% | Halifax – 4.12% |
| % of deals with internet access | 54% | 60% | 60% | 69% |
| Top rate in the market overall which has internet access £10,000 gross | Coventry BS – 1.60% | Virgin Money – 1.50% | HSBC – 2.96% | Ulster Bank – 5.20% |
(Source: Moneyfacts)
