Barclays continues to insult customers with 0.01% savings: Our new league of shame should shock you and make you act, says LEE BOYCE
- You are familiar with ours savings best buy tables – check out our tables of worst buys…
- Rates are rising and depositors can get a much better deal
- Barclays offers 0.01% easy access with no sign of change
Imagine earning 10p interest on £10,000 of savings. Well, that’s what Barclays is currently offering customers with its 0.01 percent easy access.
This is a bank whose logo features an eagle in the shape of a shield. A bird that flies high, combined with an object that protects. As for the rate of savings, neither.
The banking giant spearheaded our new big bank savings league of shame (will be updated weekly) when it comes to offering the worst simple bread and butter bills.
Such accounts hold billions in savings, much of which earns a pitiful rate. Suffice it to say, they never come close to us best buy savings tables.
Insult: Barclays still offers 0.01% off the easy access rate – we’ll be updating our worst buys tables weekly to put the worst banks for depositors to shame.
This offensive rate has been in the spotlight thanks to the rise in the base rate. At the end of last year, the base rate was 0.1 percent. This meant the Barclays account paid 0.09 percentage points lower.
However, the base rate is now 1.25 percent, which is 1.24 percentage points lower. All the other major banks have increased their easy access rates, although all are still offering 0.25 per cent or below, except for Santander, which this week raised its rate to 0.75 per cent.
At the moment, there are no plans to increase this rate.
In addition, Barclays – along with most other major banks – raised standard variable mortgage rates incredibly quickly.
Barclays has one of the highest rates, now at 5.49 per cent for new customers – this is slightly lower at 4.74 per cent for subsequent residential customers. At the end of last year, it was 3.59 percent. In August, it will become even more expensive. The gap between SVR and easy-access is widening almost every month.
He acts like a whippet to grow those SVR mortgages as quickly as possible, but like a wounded snail when it comes to the savings rate.
Since the base rate hike – a move the Bank of England is using to try to tame runaway inflation – a number of rival banks have outbid each other and outbid our independent best buy savings tables.
Now you can earn 1.45 percent on an easy access account. In other words, 14,400 percent more interest than what Barclays is offering.
Elsewhere, NatWest/RBS leads the league of shame when it comes to fixed rates – given that it doesn’t even offer them to savers.
Savers can now get a market-leading 3.08 per cent with Cynergy Bank, while High Street Bank TSB launched an annual fixed paying 2 per cent yesterday and 2.2 per cent over two years.
James Blower, the savings guru, sums it up: “It’s a real shame. Barclays has raised mortgage rates at lightning speed and has the worst SVR yet has passed nothing on to depositors.
“Unfortunately, they know that most of their depositors will not do anything about it, and they use this situation solely to increase their profits.
“Contributors really need to vote with their feet – someone with £5,000 on Easy Access could make £77 a year by switching to a service provider that is likely to increase rates as they grow.
“It is very important for depositors not to just look at the present – rates will almost certainly rise and depositors will lose even more interest if they do, as unfortunately the big banks are already signaling that they have no intention of sharing even some of the gains with depositors “.
The only major banks that have made any attempt to improve rates are Santander and TSB.
Santander offers 0.75 per cent on easy access, TSB 2 per cent for one year and 2.2 per cent for two years. And it happened just this week.
Not market leading but nowhere near as offensive as the rest of our giant high street banks.
I’ve always talked about pulling money out of low paying accounts, but now that rates are getting better every week, it’s really time to take action.
You’ll no longer be moving money from a low rate to a slightly less low rate – rates go up, and while they don’t beat inflation, they at least take some of the pain away.
Ditch the battered savings banks in our worst buys tables and get yourself a Whippet bank that offers a market-leading rate. It takes minutes.
Where to go next
What the tables are meant to do is to spur custodians into action; address this inertia to move your money and stop banks from treating depositors with such disrespect.
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