Easy access savings accounts with branch access in decline, says website
Most options offer online access, but there has been a decline in easy access accounts allowing branch access, Moneyfactscompare.co.uk said.
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Your support makes all the difference.The proportion of easy access savings accounts offering branch access to customers has been shrinking, according to a financial information website.
Two-fifths (40%) of easy access accounts in the savings market do not offer branch access, Moneyfactscompare.co.uk said.
Five years ago, in January 2019, a third (33%) of easy access accounts on the market did not offer branch access, and a decade ago, in January 2014, the proportion was 29%.
In January 2023, 37% of easy access accounts did not have branch access.
The proportion of easy access accounts with online access is on the increase.
More than two-thirds (69%) offer online access, up from 60% five years ago, and 54% a decade ago.
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
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.
“This has been a growing trend over the years, and in fact the percentage of easy access accounts that do not offer branch access has now grown to 40%, up from 29% a decade ago.”
Ms Springall pointed out that savers who are unable to manage their accounts online could be missing out on significant returns, with the top deals offering around 5% in interest.
She said: “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.”
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.