29 January 2024 , 14:09
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The number of easy access savings accounts that allow customers to use their local branch is dwindling, according to Moneyfactscompare.co.uk.
They revealed that 40% of these accounts don't offer branch access, a significant increase from 29% a decade ago. Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: "Savers looking for an easy access account will find most options offer online access, but there is a decline in accounts that allow branch access."
She also highlighted that those who can't manage their accounts online could be missing out on top deals offering around 5% interest. She added: "Older savers might prefer to manage their finances in branch for accessibility reasons.
"But it is clear to see how they could be missing out on a better return if they are not able to manage an account online. A saver earning just 1% for a year on a £20,000 pot would take home £200 in interest, whereas earning 5% would result in £1,000.
"Consumers may wish to have the option of managing their finances in branches, but it will be more time-efficient for savers to shop around online to find the best interest rates. There are savings providers who do not offer any branch access, such as some challenger banks who prefer to digitise their offers to streamline retail banking, and in fact a few institutions only offer online access."
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Last week, Yorkshire Building Society reported that 550,000 members used passbooks a physical record of money paid into or taken out of a savings account between January and September last year. The Yorkshire also commissioned Opinium to survey 2,000 UK adults in October 2023 about how they operate their finances.
It found that 57% like to operate their finances online and 47% enjoy managing their money using apps. But more than a fifth (22%) said they prefer visiting their local branch to complete their banking, rising to almost a third (31%) of people aged over 55. More than a quarter (27%) of people surveyed said they visit their local branch at least once a month.
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]