Money experts are advising savers holding £5,000 or more with major banks such as Nationwide to review their savings accounts as interest rates are set to change in January. Following the latest Bank of England base rate reduction, many high street banks are expected to slash savings rates, making it crucial for households to seek out more competitive alternatives.
While established banks like Nationwide, NatWest, and Lloyds are often trusted by savers, they typically offer lower interest rates compared to online and app-based banks. These digital banks provide options that are just as secure but frequently come with better returns.
Many savers make the mistake of remaining loyal to their existing high street accounts, even when more lucrative deals exist elsewhere. Experts stress the importance of broadening the search beyond traditional banks to maximize savings growth.
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According to recent data from Moneyfacts, the top-rated savings accounts currently include Cahoot’s Instant Access account, LHV Bank’s 1 Year Fixed Rate, and RCI Bank UK’s 2 Year Fixed Rate accounts. Households should consider switching to these or similar accounts soon, as savings rates are likely to continue declining.
Matthew Jenkin from consumer group Which emphasizes, “One of the biggest mistakes when looking for the best home for your savings is limiting your search to the high street.”