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Savers earn over £300 more with building societies

ended 24. September 2026

Building societies offer savers a much-needed boost as they’re encouraged to review their current rate this UK Savings Week, says Moneyfactscompare.co.uk analysis.

A £10,000 balance held for one year would earn £422 with the average top-rate building society account, compared with £116 with the average big bank easy access account.

Building societies paid savers an extra £2.1 billion in interest in 2025 compared with the average rates offered by the UK’s largest banks.

After accounting for inflation, a £10,000 balance in an average big bank account would lose value in real terms, while building societies can help savers protect their hard-earned cash.

  • What is your reaction to the analysis?
  • What advice do you have for savers?
  • Any other thoughts.

Responses asap.

3 responses from the Newspage community

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Scott GallacherVerified
Director at Rowley Turton
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Unfortunately, the big banks appear to rely far too heavily on their name, customer loyalty and, frankly, saver inertia. The difference highlighted here is substantial: more than £300 a year on £10,000 simply for having your money in a more competitive account.

Savers should adopt a simple three-step strategy: shop around for a competitive rate, check it regularly and be prepared to switch when necessary. Loyalty rarely pays when it comes to savings.

For people who do not want the hassle of constantly chasing the very best rate, there are cash management services.

National Savings & Investments are also be worth considering. Not always offer the market-leading rate, but its products can provide a relatively decent return on cash without continually moving money between providers.

The important thing is not to leave substantial cash sitting forgotten in a poorly paying account. A few minutes spent checking your rate can potentially be worth hundreds of pounds a year.
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Ross LaceyVerified
Director at Fairview Financial Management
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It makes sense to maximise the interest earnt on cash, but over the long term, interest on cash in the bank is unlikely to keep pace with inflation, meaning a loss in real terms.

This is where it's prudent to consider how much is too much when it comes to cash, and looking at other ways to have a fighting chance of keeping its buying power.
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Harvey DhillonVerified
Founder & CEO at Zmartly
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Savers are right to move their money, and this analysis shows how little some big banks pay for loyalty. The headline gap is real, but it overstates what higher-rate taxpayers with bigger balances will keep, because every figure is measured before tax. A higher-rate taxpayer gets only £500 of savings interest tax-free, and anything above that is taxed, so even a top building society rate can end up behind inflation. My advice is to estimate how much interest you'll earn this year before you switch, remembering that it counts towards your tax band. If you're likely to go over your allowance, use your ISA first, since the interest inside it is tax-free. Tax rates on savings income are also due to rise from next April, so it's worth checking this now rather than after the tax year ends.