- 34% of savers opened an account with a new provider in the last two years
- Of these, 55% ditched high street banks for digital banks
- Better interest rates was the main reason for moving to a digital bank
Savers are now more likely to open an account with an online-only bank than with a familiar high street name, exclusive data for This is Money shows.
In the past two years, 34 per cent of Britons have opened a savings account with a new bank or savings provider.
And half of savers who moved their savings in the same timeframe ditched traditional high street names for digital banks.
Jumping ship: Savers having been ditching high street banks en masse for digital banks for better rates
The high street giants have been accused of ripping savers off by offering miserly rates, with many still offering easy-access accounts paying as little as 1.75 per cent.
Most savers who moved to a new bank did so because of higher rates.
More than half of savers say their previous bank was not passing on higher interest rates despite the base rate hikes, the survey of 2,000 people by SmartSave revealed.
Anna Bowes co-founder of website Savings Champion, says: ‘It’s great to see savers shake off the inertia that afflicts many – the high street banks depend on the fact their customers remain loyal but reward this with poor rates on their savings.
‘One of the best ways for these poor paying providers to pay more interest is if their customers vote with their feet and move somewhere else to earn the top rates of interest they deserve.’
The average easy-access account pays a rate of 3.2 per cent according to rate scrutineer Moneyfacts.
The top rate on an easy-access account is 5.3 per cent which is offered by small building society Chorley, although this only allows penalty-free access once.
Coventry Building Society offers 5.2 per cent, with access allowed penalty-free three times a year and Ulster Bank – part of NatWest – offering the same rate, but only on balances beyond £5,000.
The best rate paid on a one-year fix is from Union Bank of India, paying 6.11 per cent interest.
The average rate for this type of account sits at 5.38 per cent with most high street banks nowhere near close to matching this.
Andy Mielczarek, founder of SmartSave says: ‘With many big banks failing to pass better rates onto customers despite base rate hikes – and rightly coming under fire for these failings – it’s not a surprise that savers are looking beyond the high street.’
