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Do NOT be loyal to high street banks, savers warned

ended 04. August 2025

Loyalty to the big high street banks is still costing Brits heavily, experts have said, despite the fact that new research from KPMG shows high street banks have lost £100bn in deposits over the past five years as UK savers shift to challenger banks, specialist lenders and pure online savings providers.

Fortunately, more Brits are finally waking up says Paul Williams, Managing Director at Solomon Global: “KPMG’s findings highlight a clear shift in the mindset of UK savers. They are becoming acutely aware that high street banks are no longer competitive when it comes to wealth preservation”.

He continued: “Savers are looking for asset classes that offer protection against both inflation and increasing tax pressures. They are also looking for something that is outside the banking system so that they have greater control of their wealth. At Solomon Global, for example, we’ve seen a 72% rise in enquiries about physical gold over the past year.”

Philly Ponniah, Chartered Wealth Manager at Philly Financial, says: "Providers like Plum, Chip, Tandem and Zopa are offering easy access and fixed-term rates that are far better than the traditional banks. These aren’t household names yet, but they consistently appear at the top of best-buy tables.

“Personal savers should remember that Cash ISA rates often drop steeply after 12 months. Always check the small print, and use an ISA transfer form to keep your tax-free status intact when switching.”

Scott Gallacher, Director at Rowley Turton, added: “High street banks have been short-changing savers for years — and people are finally waking up. We recently took on a client who sold their business and left the proceeds sitting with their bank, earning around 1.5% less than available elsewhere.

"By switching to a diversified mix of top-paying accounts, we boosted their annual interest by £27,000 while also improving FSCS protection.

"Challenger banks and specialist providers like Charter Savings Bank, Aldermore, and Close Brothers are consistently outperforming the high street. Savers owe it to themselves to shop around — loyalty to the big banks is costing them thousands.”

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Philly Ponniah
Chartered Wealth Manager and Financial Coach at Philly Financial
Providers like Plum, Chip, Tandem and Zopa are offering easy access and fixed-term rates that are far better than the traditional banks. These aren’t household names yet, but they consistently appear at the top of best-buy tables. But don't just assume all challengers are better, Starling, for instance, offers 0% on personal savings. If you’re a business owner, make sure the funds you’ve set aside for tax are actually earning something. Too many business accounts pay pennies or nothing in interest. And for personal savers, remember that Cash ISA rates often drop steeply after 12 months. Always check the small print, and use an ISA transfer form to keep your tax-free status intact when switching.
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Scott Gallacher
Director at Rowley Turton
High street banks have been short-changing savers for years — and people are finally waking up. We recently took on a client who sold their business and left the proceeds sitting with their bank, earning around 1.5% less than available elsewhere. By switching to a diversified mix of top-paying accounts, we boosted their annual interest by £27,000 while also improving FSCS protection. Challenger banks and specialist providers like Charter Savings Bank, Aldermore, and Close Brothers are consistently outperforming the high street. Savers owe it to themselves to shop around — loyalty to the big banks is costing them thousands.
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Paul Williams
Managing Director at Solomon Global
KPMG’s findings highlight a clear shift in the mindset of UK savers. They are becoming acutely aware that high street banks are no longer competitive when it comes to wealth preservation. At Solomon Global, we’ve seen a 72% rise in inquiries about physical gold from H2 2024 to H1 2025. This is not just about gold delivering 40% growth over the last year. Our survey of 14,000 prospective investors highlighted that 42% cited gold’s tax-free status as the key reason they were exploring the asset (up from 37.51% in the previous period). The rise is likely to be attributed to investors responding to tighter Capital Gains Tax rules. Savers are looking for asset classes that offer protection against both inflation and increasing tax pressures. They are also looking for something that is outside the banking system so that they have greater control of their wealth.