Savers without internet access are being penalised as the best rates are increasingly reserved for online accounts.
You can earn as much as 3.06 pc online, some 0.5 percentage points more than the top branch-based accounts.
The gap widened as smaller banks reacted swiftly to National Savings & Investments’ rate boost last week. The Treasury-backed bank now offers 2.85 pc on its internet and telephone-based Direct Saver.
Online only: You can earn as much as 3.1% online, some 0.55 percentage points more than what’s offered by the top branch-based account widely available to savers
Within hours the newer banks, offering only online or app-based accounts, raised rates.
It can take weeks for big banks and building societies to follow suit. And there is no guarantee they will move the rate they pay on branch-based accounts at all.
Missing out most are older savers. Office for National Statistics figures show just 49 per cent of over-65s use internet banking.
As rates rise to their highest for more than a decade, the gap between online and branch accounts is growing.
The average of the top five online accounts is 3.04 per cent, up from 0.7 per cent in December 2021 when Bank of England base rate started its rapid rise from 0.1 per cent to 4 per cent today.
The best branch accounts now pay an average 2.5 per cent, up from 0.4 per cent.
On a £20,000 pot, over a year, a 3.06 per cent rate generates £612 in interest compared to £506 on 2.5 per cent — a premium of £106 for online users.
Big banks are also keeping those without internet access from the top deals. For example, HSBC offers a 3 per cent rate up to £10,000 for those happy to open and run theirs online — but only 0.9 per cent if you’re not.
On the top balance, that’s a difference of £210 interest over the year.
Rachel Springall, of financial data firm Moneyfacts, says: ‘The link between base rate and savings rates is much more disconnected now.
‘There is no guarantee savers will benefit from every single rise in base rate. Online banks are keen to attract deposits and offer better rates than High Street competitors.’
Top of the online accounts is Shawbrook Easy Access at 3.06 per cent, Tandem Instant Access and Sainsbury’s Defined Access, both at 3.05 per cent, Cynergy Bank Online Easy Access at 3.04 per cent and Gatehouse Bank at 3 per cent.
But there are catches. Cynergy has a bonus of 0.15 percentage points and Tandem a 0.25 point bonus for 12 months.
After that you earn a lower rate. Sainsbury’s only allows three withdrawals a year rather than easy access to your cash.
Shawbrook pays the top rate where there are no catches. Other online accounts nearing the 3 per cent benchmark with no catches are Secure Trust and Atom both at 2.95 per cent.
The top branch equivalent is Yorkshire BS’s Access Saver Plus issue 7 at 2.55 per cent.
You can earn over 3 per cent in branch accounts, too. But it depends on where you live, if you are happy with the account’s restrictions and how fast you can snap up accounts on sale for just a short time.
The Rainy Day Account from Yorkshire BS pays 3.35 per cent. But this is only paid on the first £5,000. And withdrawals can be made on just two days a year.
Swansea pays 3.25 per cent on its Easy Access Account, but you must live in Wales to open one.
Bath Building Society Instant Saver account will pay 3.09 per cent from March 1. But you must live or work in the city to open one.
Newbury BS Welcome account pays 3.15 per cent but only to new customers on their first £3,000.
Just below the 3 per cent benchmark is Skipton Branch Tracker Issue 4 at 2.9 per cent on sale through its 87 branches around the country.
Available online and in branches, it guarantees to pay the Bank of England base rate less 1.1 percentage points for two years. But you need to grab this ‘now you see it, now you don’t’ account while you can.
Money Mail does not include easy-access accounts with bonuses or limited withdrawals in its best buy tables. But we do inform you of what is on offer.
