Millions of savers are keeping their cash in low-paying accounts - despite rates increasing at the fastest pace in a decade.
New figures from Paragon Bank show four in five easy-access savers still have money put away in an account paying less than 0.1% interest.
In comparison, the top-paying easy-access account right now from Chase pays 1.5% interest on deposits up to £250,000.
For savers with less cash to put aside, Virgin Money pays more at 2.02% on a much lower amount of up to £1,000.
Paragon suggests the average saver could make £176 in a year by switching to the best-paying account.
Someone with £12,511 stashed away in an account paying 0.1% or less could expect to earn a maximum of £12.51 in interest in a year.
But putting that same amount into the best-paying 1.5% account from Chase would earn £189 after one year - a difference of £176.49.
Derek Sprawling, Paragon Bank savings director, said:”'It is remarkable that £400 billion of savers' money is sitting in accounts paying up to 0.1% and it demonstrates how the high street banks rely on consumer apathy.
“In this inflationary environment, I would urge savers to make their money work as hard as possible for them and to seek better rates of return for their finances.
“Unfortunately, for too many people convenience trumps rate, but that needs to change.”
Top-paying savings accounts
Average fixed rates savings deals have seen their biggest monthly rise in over a decade in May, according to Moneyfacts.
To make sure you're not missing out on hundreds of pounds in interest this year, we've rounded up the top-paying savings accounts right now.
These are correct at the time of writing, but as savings rates do change daily, it is always best to do a quick comparison before opening a new savings account.
Easy-access accounts
Easy-access accounts allow you to deposit and withdraw money whenever you want, without paying a fee.
The below accounts are all covered by the Financial Services Compensation Scheme (FSCS), which protects up to £85,000 of your savings if a bank was to go bust.
- Chase Bank - 1.5% (no min deposit/max deposit £250,000)
- Atom Bank - 1.25% (no min deposit/max deposit £100,000)
- Aldemore - 1.25% (min deposit £1,000/max deposit £1million)
Chase is the top-paying account right now, offering 1.5% on savings up to £250,000 and with no minimum deposit.
This rate is only available to existing Chase current account holders and those who sign up for a new current account.
For smaller savings, Virgin Money pays 2.02% up to £1,000 and NationWide pays 2% on savings up to £1,500.
Notice accounts
With a notice account, you have to let the bank or lender know that you want to make a withdrawal.
They do generally pay more than easy-access accounts, but you cannot withdraw cash as and when you need it.
The top-paying notice accounts right now, all protected by the FSCS are:
- PCF Bank - 1.63% (180 days notice - min deposit £1,000/max deposit £85,000)
- OakNorth Bank - 1.6% (120 days notice - min deposit £1/max deposit £500,000)
- QIB UK via Raisin - 1.55% plus £25 bonus for some (95 days notice - min deposit £1,000/max deposit £85,000)
Fixed-rate accounts
A fixed savings account is where you get a set rate for a certain period of time, but you won't be able to withdraw your cash within that period.
This means you need to know that you can do without that money for a set amount of time.
The top-paying one-year fixed accounts right now, all protected by the FSCS are:
- Vanquis Bank - 2.27% (min deposit £1,000/max deposit £250,000)
- Tandem - 2.26% (min deposit £1/max deposit £2.5million)
- Secure Trust Bank - 2.26% (min deposit £1,000/max deposit £1million)
The top-paying two-year fixed accounts right now, all protected by the FSCS are:
- Al Rayan Bank - 2.7% (min deposit £5,000/max deposit £1million)
- Ikano Bank - 2.65% (min deposit £1,000/max deposit £1million)
- Vanquis Bank - 2.62% (min deposit £1,000/max deposit £250,000)
The top-paying five-year fixed accounts right now, all protected by the FSCS are:
- Hodge Bank - 2.83% (min deposit £1,000/max deposit £1million)
- Shawbrook Bank - 2.8% (min deposit £1,000/max deposit £2million)
- Ikano Bank - 2.8% (min deposit £1,000/max deposit £1million)
