Surge in saving accounts paying poor rates

clock

Tens of thousands of savers are receiving 0.4% return after tax or less following a rise in accounts paying derisory rates.

Research from Which? revealed the number of accounts paying these low rates has increased by nearly two-thirds in the past 12 months, according to the Daily Mail. The rise is the result of banks and building societies launching a string of accounts with headline-grabbing rates of 2.4% after tax (3 % before) or more. Meanwhile, they close existing accounts to new savers and the rate drops sharply. Which? researched 1,727 savings accounts that have been superseded by newer versions to find 546 paid 0.4% or less, 341 more than last year. Of these, 307 pay 0.08% or less - up by more th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

IFS: Reeves must plug £22bn fiscal hole to restore 'tiny' headroom

IFS: Reeves must plug £22bn fiscal hole to restore 'tiny' headroom

Think tank urges chancellor to avoid 'limping from one forecast to the next'

Linus Uhlig
clock 16 October 2025 • 2 min read
Why higher bond yields aren't causing a Mini-Budget meltdown

Why higher bond yields aren't causing a Mini-Budget meltdown

'One thing we know about Rachel Reeves is she will live or die by her fiscal rules'

Laith Khalaf
clock 07 October 2025 • 5 min read
City 'has lost sympathy with this Labour government' - George Osborne

City 'has lost sympathy with this Labour government' - George Osborne

Former chancellor defends the OBR

Michael Nelson
clock 01 October 2025 • 3 min read