Why the top savings rates aren't on the high street

Challenger banks may have unfamiliar names, but they offer security as well as good returns

High Street Banks
(Image credit: STAFF/AFP/Getty Images)

In the past six years a new breed of bank has been trying to gain a foothold in the UK market. And almost imperceptibly, they have built up a presence in the savings market. Take a look at best buy tables today and you will struggle to recognise any of the banks and building societies vying to hold your money.

Traditional institutions such as HSBC, NatWest and Barclays have continued to offer poor deals to savers, with rates regularly below one per cent. But unfamiliar names such as Charter Savings, Shawbrook Bank and Vanquis have leapfrogged them to offer the best savings rates.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Explore More