Savers could earn £346 from savings switch as cash bonuses tempt record numbers to change banks

• Current Account Switch Service finds more people than ever switched bank accounts at the end of 2023 to take advantage of bonuses up to £200
• With most of these cash incentives now gone, big bank customers could earn up to £346 a year in interest by switching to the best easy access rate
• Atom bank analysis finds big banks are still offering poor easy access savings rates despite pressure to increase

Atom bank has today released new analysis which reveals that savers are potentially missing out on up to £346 worth of interest a year by keeping their hard-earned money in low interest easy access savings accounts with high street banks.

The analysis comes as record numbers of customers switched current accounts to a new bank at the end of 2023. Data released last week from the Current Account Switch Service found that more people than ever switched current accounts between October and December 2023. The majority of these customers moved to high street banks such as HSBC, Natwest and TSB, who offered hefty switching bonuses of up to £200 before Christmas.

Atom bank’s analysis shows that these high street banks are still paying as little as 1.40% on their easy access savings accounts today, with the current market leader paying over 5.00%. The bank found that while switching a current account to a high street bank could bag a £200 bonus, moving savings to a provider paying a better rate could earn an additional £346 annually in interest.

With far fewer banks now offering such cash incentives, and many people re-evaluating their personal finances amid ongoing economic uncertainty, being savvy and switching savings is still an easy way for customers to bag additional interest.

The analysis today comes following Atom bank’s ‘Get paid, not played’ campaign, which last year called on high street banks to offer fairer rates on easy access saving products.

Mark Mullen, CEO at Atom bank, comments: “The lure of hefty bonuses to switch a current account clearly works, and people are right to take advantage of such offers. The truth remains however that once these banks have customers through the door, there is rarely a reward for their loyalty.

“Despite a campaign from the Treasury Select Committee and mounting media pressure to raise rates, these banks are still paying their savings customers below 2.00% on their easy access account.

“Now that these cash incentives have largely disappeared, I would implore anyone who has money sitting with one of the big banks to be savvy with their savings. They may be missing out on hundreds of pounds in interest, which when it comes to providers like Atom bank, may just be a few clicks away on your mobile phone.”