The seven banks that pay just 10p on £1,000 of savings


It is already difficult for savers to get a decent return on their cash. There are low interest rates across the board and many accounts are returning less than the rate of inflation.

Yet some providers are plunging new depths by paying as little as 0.01 per cent interest to struggling savers.

A investigation into the market by our sister website Moneywise found dozens of accounts on sale at the time of writing paying paltry rates of interest of well below the Bank of England's 0.25 per cent base rate.

We searched the UK's major banks and building societies and discovered accounts from Clydesdale Bank, HSBC, NatWest, Royal Bank of Scotland and Yorkshire Bank paying just 0.01 per cent interest on balances of £5,000.


To put that into context, if you saved this amount for a whole year you would earn just 50p for your trouble.

As well as these low-paying accounts there were even more offering 0.05 per cent interest. Particularly disappointing is the number of local building societies giving such poor returns.

Saffron Building Society, Vernon Building Society and West Bromwich Building Society all offer accounts with just 0.05 per cent interest. See our table below for a full list of the worst offenders.

Money often ends up in these low-paying accounts when other savings products have matured. While banks and building societies are required to contact customers when rates change, it can be difficult and confusing for consumers to find out what their account offers.

A look at many of these accounts online leaves a lot to be desired. Terms such as 'reliable' and 'simple' are used to describe these products, yet information on the pitiful rates is often hidden in the small print or on another page entirely.

Yorkshire Bank's website says its Instant Savings account offers 'tiered interest rates' based on your balance. Yet every single tier actually pays the same woeful 0.01 per cent rate.

If you're unsure what you're earning from your account you should contact your bank or building society immediately.

When we asked providers to justify these low interest rates, they typically said they offer a range of accounts to suit all needs - something which doesn't help consumers unknowingly languishing on these low rates.

Plus, remember that while these accounts are the very worst on the market, there are many more paying pitiful rates of 0.1 per cent so make sure you check your interest rate and switch if that's the case.

Despite returns on savings remaining low across the market, switching away from these accounts to today's best buys can give you more than 100 times the return.

The top easy-access account is RCI Bank Freedom Savings Account, which pays 1.1 per cent, while those willing to fix for a year can get 1.65 per cent with United Trust Bank. You can also earn up to 5 per cent from certain current accounts, although these will require you to jump through some hoops.

ProviderBrand NameRate on £500 balance (%)Rate on £5,000 balance (%)Rate on £50,000 balance (%)
Allied Irish Bank (GB)Demand Deposit Account0.050.050.05
Bank of Ireland (NI)Classic Saver0.050.050.05
BarclaysEveryday Saver0.050.050.05
CitiFlexible Saver0.050.050.05
Danske BankDanske Choice Plus Savings Account0.050.050.05
First DirectSavings Account0.050.050.05
HSBCFlexible Saver Advance0.050.050.05
HSBCPremier Savings0.050.050.05
Saffron Building SocietyEasy Access Account0.050.050.05
Vernon Building SocietyInstant Access0.050.050.05
West Bromwich Building SocietyBase Rate Tracker0.050.050.05
West Bromwich Building SocietyDirect Tracker Saver0.050.050.05
West Bromwich Building SocietyOak Account0.050.050.05
West Bromwich Building SocietyPremium Share0.050.050.05
Clydesdale BankInstant Savings0.010.010.01
Clydesdale BankSavings Account Plus0.010.010.01
Danske BankMidas Gold0.010.010.01
Danske BankSavings Account Plus0.010.010.01
Danske BankSummit0.010.010.01
HSBCFlexible Saver0.010.010.01
NatWestInstant Saver0.010.010.01
Royal Bank of ScotlandInstant Saver0.010.010.05
Ulster BankEasy Savings Account0.010.010.05
Ulster BankLoyalty Saver0.010.010.05
Yorkshire BankInstant Savings0.010.010.01
Yorkshire BankSavings Acount Plus0.010.010.01


Allied Irish Bank (GB)

AIB (GB) offers competitive long-term deposit rates for personal customers in a low interest rate environment. Customers with Demand Deposit accounts are provided with 60 days' notice of a rate change.

Bank of Ireland (NI)

Did not respond to request for comment.


Did not respond to request for comment.


Did not respond to request for comment.

Clydesdale Bank and Yorkshire Bank

Customers received 60 days notification of the last rate change, which was made in response to the base rate change to 0.25 per cent.

In addition the rate is printed in a visible position on all statements. In a low-rate environment those products offer simple, free and instant access to money as well as security.

Danske Bank

We offer our customers a range of savings accounts to suit different needs and circumstances. When we change rates we write to customers two months in advance and clearly explain the different options available to them, including details of alternative products.

We would always encourage customers to talk to us to see if their savings could be working harder for them.

First Direct and HSBC

Customers have a range of motivations when opening a savings account including saving for something specific, to earn interest or as an additional transactional account.

Depending on how they use their accounts customers look for different features to meet their needs including interest rates, service quality, and access/convenience.

Our HSBC Flexible Saver is designed to encourage a savings habit, providing easy access and the convenience of managing their account using various channels as well as paying interest.

NatWest, RBS and Ulster Bank

In a historically low interest rate environment, we continue to encourage savers with a range of accounts to meet their needs.

Saffron Building Society

The Easy Access Account is a long standing product in our range which customers tend to use as a holding account from which they move money into and out of other savings accounts. The average balances are low with 58 per cent of accounts having less than £50.

The benefit for the customer is that it is an immediate access account and an easy vehicle to manage their money dependent upon their savings goals. It is not intended to be a long-term savings account.

Vernon Building Society

Our Instant Access account has an interest rate that represents the high transactional nature of the account and the cost to the society of running it.

West Bromwich Building Society

We do have some legacy accounts such as Premium Share, which we no longer actively promote because they are not offering a competitive rate of interest.

Customers are free to move funds from this account at any time and we will gladly introduce them to other investment opportunities with the society, which may be better suited to their needs.

For the society's savings products which track the Bank of England base rate, it is part of the terms and conditions that any movement (up or down) in bank rate will be reflected in the rate of interest within seven days and customers should be aware of this based on their original applications.

This article was written for our sister website Moneywise.

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