Experts say that you should stay away from branch based savings products, as the online and postal deals provided by personal and business bank account providers are usually much more lucrative.
New research has uncovered that online banking or post based banking can earn savers much better returns on their savings accounts in comparison to traditional easy access savers. Many of these less traditional options offer interest rates in excess of 3 per cent before basic tax is taken into account.
One such saver, the NetSaver 2 from Derbyshire Building Society, offers 3.16 per cent before tax. Likewise, the Saffron Building Society’s Issue 3 of its eSaver offers a comparable 3.15 per cent, while the new Postal Bonus Saver from Leeds Building Society squeaks over the 3 per cent bar with its 3.05 per cent return rate.
The Leeds BS offering, it should be noted, includes a bonus rate of 1 percentage point, which runs until the end of October 2012. However, the minimum investment on the account is a relatively high £5,000, with savers facing account closure if their balance dips below this sum.
In comparison, High Street offerings are much less rewarding for walking into a branch to conduct your banking business. The most generous deal is the Direct Saver from Newcastle BS, offering 2.35 per cent on an account that only allows you four withdrawals every year without penalty.
Yorkshire Building Society, along with its subsidiaries Chelsea and Barnsley building societies, has a Triple Access Saver offer that only rewards savers 2.25 per cent on their balances. Additionally, savers are limited to only making a total of three withdrawals in one 12 month period.