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While the Bank of England base rate has remained at 5.25% for nearly a year, high street banks are behind in passing on higher and competitive rates to savers. Just last year, five major banks in the UK with over £260 billion in easy access accounts offered only 1% or less1. 

To combat this, Saga, the UK's specialist in products and services for people over 50, offers a range of solutions for savers to consistently benefit from competitive savings rates within an underserved market, making it easy for savers to make their money work harder 

As the cost of living continues to squeeze households, savers must look for ways to make their money go further and savings accounts have a real part to play. Recent data2 on savings in the UK shows that over half of adults (61%) save money either every or most months, with the mean average amount of savings standing at £17,365. However, up to a third (34%) of adults do not have any savings (or less than £1,000) and almost two thirds (65%) of people believe they wouldn’t be able to last three months without borrowing money. Whilst managing savings is a highly personalised process, Saga wants to help customers grow their money.  

Despite having nearly a year to pass on more competitive rates, high street banks continue to lag behind in offering customers the best deals. Saga Money experts are encouraging people to shop around to make sure their money is in the best place for them. The digital world has really made it so much easier and more accessible for everyday savers to move their savings from current accounts or low-interest high-street offerings.

Saga’s Product Director, Alex Edmans says: “At the moment, loyalty isn’t being rewarded when it comes to saving with your high street bank and people should be looking around for the best ways to make their money go further. There is also a myth that you have to lock your money away for a long time to get a decent rate, but that’s simply not the case. Customers, particularly in older age, may feel nervous about online banking, but Saga offers phone support on all our products so our customers can benefit from very competitive rates with the support that they need and peace of mind to make their money work hard for them 

Another misconception is that customers have missed out on the highest interest rates, with the Bank of England expected to cut the base rate later this summer. However, there is still time to act and current savings rate deals still beat inflation and are higher than they have been in previous years. Saga Money is offering customers rates of up to 5.05% AER through their Saga Savings Platform in partnerships with Flagstone, meaning that through an initial deposit of £10,000 to the platform, customers can earn £400 more interest in just one year3. This compared to the big five high street banks where just last year, their easy access accounts offered only 1% or less.4 Edmans notes: “Whilst it may not seem like a big difference now, it soon adds up and the more you have in savings and the longer you can store it, the greater those returns will be. As 2024 goes on and inflation and interest rates look set to fall, savers should act now to make the most of these competitive rates.”  

With savings accounts being the most popular savings method among UK adults5, Saga is well-placed to support customers with their savings goals, regardless of their needs. New customers will join thousands of others across the UK who already trust Saga with their savings, through its popular range of savings products.