Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Banking

HIGH STREET FAVOURITES ECLIPSED BY UK CHALLENGER BANKS ON RATES

HIGH STREET FAVOURITES ECLIPSED BY UK CHALLENGER BANKS ON RATES
  • 1 and 2 Year fixed-term savings rates from challengers over 1% higher than high street on average
  • Challengers beat high street instant access accounts by 0.85% on average
  • Research by Gatehouse Bank highlights the gulf between challengers and established players

Challenger banks are eclipsing the High Street’s big names with savings rates more than 1% higher on average, new research by UK challenger bank, Gatehouse Bank, revealed today.

The average 1 Year fixed-term deposit account offered by UK challenger banks pays an eye-opening 1.18% more than the equivalent on the high street — 1.82% compared to 0.63%*.

Likewise, the average 2 Year fixed-term deposit account across the challenger bank community pays a whopping 1.29% more than the high street — 2.05% compared to the significantly lower 0.76% paid by established banking players.

And for people who like to be able to get at their savings immediately, the average instant access account rate among the challengers is 0.85% more than on the high street — 1.23% compared to just 0.39%.

The table below reveals the low returns offered by the UK’s high street banks when it comes to everyday savings products.

  Ave 1 Year Fix AER Ave 2 Year Fix AER Ave Instant Access AER
High Street 0.63% 0.76% 0.39%
Challenger 1.82% 2.05% 1.23%
Difference 1.18% 1.29% 0.85%

Charles Haresnape, CEO, Gatehouse Bank, commented:

“If proof were needed that, even in a low interest rate environment, it’s worth shopping around, then it’s the dramatic difference in the rates paid to the nation’s savers by challengers compared with larger banks.

“Sadly too many savers still opt for products from household names as they are unaware of the best buys that exist beyond the high street. What they also often overlook is the fact that deposits in UK challenger banks are protected by the FSCS in exactly the same way as with a high street bank.”

As a Shariah-compliant UK bank, Gatehouse Bank’s own Milestone Savings products — protected by the Financial Services Compensation Scheme (FSCS) — are ethical by default and offer an alternative to interest called the Expected Profit Rate (EPR).

The accounts’ returns are generated by the bank’s profit-generating Shariah-compliant assets, with some of the profit the bank earns from these activities returned to customers, allowing them to grow their savings without earning interest.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post