Now 40% of easy-access savings accounts cannot be accessed in branch

A growing number of easy-access savings accounts are not available to open in-branch, new data shows.

Today, 40 per cent of easy-access accounts do not offer branch access, Moneyfacts Compare figures show.

And this trend has been growing. The number of saving accounts not offering branch access has jumped from 33 per cent in the past five years and is up from 29 per cent a decade ago.

Easy-access accounts that offer online access are on the rise. More than 69 per cent offer online access, up from 60 per cent five years ago, and 54 per cent a decade ago.

Online shift: 40% of easy-access accounts do not offer branch access, forcing savers online if they want to bag a good rate

It comes as report from Yorkshire Building Society reveals more than a fifth prefer in-branch service for their day-to-day banking needs, and over a quarter visit their local branch at least once a month.

As banks continue to close branches, accessibility to cash for those who prefer to manage their overall day-to-day banking needs in person is becoming increasingly scarce.

Last week, Lloyds Bank announced it was cutting around 1,600 jobs across its branches in a massive company wide shake-up which will see more online services.

Why does this matter?

There is a warning here. High street banks who offer easy-access accounts in branch are notorious for offering rates far lower than those of online providers

Our analysis in November last year revealed that five of the UK’s biggest banks paid 1.85 per cent on average on £10,000 held in an easy-access account.

The best easy-access account available pays a rate of 5.15 per cent. It is offered by Earl Shilton Building Society which offers branch access, as building societies tend to do.

However, it only has two locations – and it is Britain’s second smallest mutual. 

Many of the other providers offering a top rate of 5 per cent or more can only be opened online.

Rachel Springall, finance expert at Moneyfacts Compare says: ‘Savers who prefer to manage their account in branch and save their money with one of the biggest high street banks will be sacrificing the interest they earn on their savings.

‘Savers could be earning as little as 1 per cent, or on average 3 per cent, but in fact they could earn around 5 per cent on the top easy-access accounts.

‘A saver earning 1 per cent for a year on a £20,000 pot would take home £200 in interest, whereas earning 5 per cent would result in £1,000.’

Many older savers, for example, might only be able to manage their finances in branch for accessibility reasons.

And for some, it is simply the case that they want to go into their local branch and lodge or withdraw their money in the way they want with staff they know and trust.

Part of a wider debate

Aside from savers who prefer to manage their accounts in branch, there is a wider debate ongoing over the overall accessibility to cash, which is under scrutiny by the Financial Conduct Authority (FCA).

At the end of last year, the FCA proposed new rules to protect access to cash in the UK.

Under the proposals, designated banks and building societies will have to assess gaps in access to cash.

These assessments will take into account local factors such as demographics and transport.

Where banks and building societies identify gaps in access to cash, they will have to address them.

The FCA’s new rules will not be finalised until later this year, but it is worth noting they do not have the power to prevent bank branches from closing.

Springall says: ‘Those concerned about the loss of their local branches would be wise to speak to their provider to discuss other locations or consider moving their accounts to an alternative brand that can cater for their day-to-day banking needs.’

This post first appeared on Dailymail.co.uk