Lloyds Banking Group PLC (LSE:LLOY) has been called out for offering the least to savers in flexible accounts across big banks, which appear to grant some of the poorest rates on the market.
According to Moneyfacts, Lloyds’ easy saver account offers a gross rate of 1.30% at £10,000, making it the lowest rate on offer among the big UK lenders.
NatWest Group PLC (LSE:NWG)’s flexible saver was said to offer the second lowest rate of 1.59%, behind Barclays PLC (LSE:BARC)’s 1.65% everyday saver account.
Including sub-2.00% rates from Banco Santander (LSE:BNC) and HSBC Holdings PLC (LSE:HSBA), Moneyfacts noted big banks offered an average of 1.64% against the wider market’s 3.08%.
“This clearly demonstrates why savers need to look beyond the most familiar brands, as their loyalty is not being repaid,” Moneyfacts finance expert Rachel Springall said.
“The consumer duty rules from the Financial Conduct Authority are designed to provide better value for consumers, and it will be up to providers to ensure they are offering their customers fair value.
“However, it will be down to savers to proactively keep on top of the rates and service they receive and be sure to complain if they are treated poorly.”
Moneyfacts added the big banks’ fixed bonds offered some of the best rates on the market, at upwards of 4.00%.
“Traditionally easy access accounts would pay lower rates than fixed,” Springall acknowledged, adding a “clear disparity” had emerged between the two at big banks.
Banks had faced scrutiny last year when increases in savings rates appeared to drag behind those for mortgages as the Bank of England lifted base interest.
Springall noted a wider dip in savings rates was to be expected following the central bank's move to cut base interest in August.