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Banks Pocket £44 Billion: Savers Betrayed!
18 Feb
Summary
- High street banks earned £44 billion last year from interest rate gaps.
- Savers earned an average of £112 on £10,000, far below potential earnings.
- Top competitors offered savings rates over 4%, significantly higher than big banks.
High street banks have generated immense profits by exploiting the interest rate gap, earning £44 billion last year alone. This figure represents a significant increase from the previous year, with major banks like Barclays, Lloyds, and NatWest showing substantial net interest margins. Despite these record earnings and substantial pay rises for executives, savers continue to receive minimal interest on their easy-access and current accounts, averaging just 1.12% at the end of last year.
This low rate is less than a third of the Bank of England base rate, which stood at 3.75% as of 2026-02-18. For every £10,000 saved, customers received only around £112 in interest. Had banks offered more competitive rates, similar to their top-paying competitors who offered over 4%, savers could have earned upwards of £400. Even average payers offered double the rate of the big banks.
Banks have also reduced operational costs by closing hundreds of branches. While some specialized accounts offer higher rates, they often come with restrictions or short-term bonuses. The article urges savers to switch providers to secure better returns, highlighting that online banking makes this easier than ever before, enabling customers to access higher rates without compromising on accessibility.
