If you opened a savings account years ago and haven’t checked the interest rate recently, you could be in for a shock. Some banks pay as little as 0.05% interest on closed savings accounts. This article highlights some of the savings accounts that currently pay the lowest rates of interest.
Closed savings accounts
I’m highlighting some accounts provided by the big banks and building societies. I’ve listed the banks in alphabetical order, not according to the interest rates they pay. Most of the banks have a large number of closed accounts and some pay slightly more on certain closed accounts than on others.
The least you’ll earn at Barclays, as I write this, is 0.2%. Three of its accounts currently pay this rate. The Barclays Savings Reserve (easy access) pays 0.2% on balances up to £50,000 and 0.25% on balances over £50,000. The Prime Account pays 0.2% no matter how little or how much you have. The Openplan Savings, which also pays 0.2% on balances up to £50,000 and 0.25% on balances over £50,000. You can check the interest rates Barclays offers on its closed savings accounts on its website (it’s a section towards the bottom of the screen).
The Co-op Bank has quite a few closed savings accounts that pay interest starting at 0.06%. Some pay a higher rate of interest, but if you have a Co-op savings account that you’ve had for quite a few years, I’d check the interest rate as you could be earning next to nothing.
First Direct’s everyday savings account pays 0.05%. It’s not a closed account – it’s still open to new customers (amazingly!). It’s the only one that pays such a low rate of interest and I couldn’t find details for any closed accounts. You can read more about interest rates on savings accounts on First Direct’s website.
Halifax has a lot of accounts that you can no longer open which pay 0.1% or a little more. Some of the ones paying the lowest rates of interest include: Extra Income Saver, Monthly Saver, Saver Reward, Variable ISA Saver, Passbook Saver, 60 Day Gold, Liquid Gold and Bonus Gold. These all pay 0.1% interest.
Halifax has other closed accounts that pay from 0.2% interest. If you want to check yours, you can find a list of all old savings accounts on Halifax’s website.
HSBC has two accounts which are still open to customers that pay 0.1% or less. Its Premier Savings Account pays 0.1%, while its Flexible Saver pays 0.05% to customers who don’t have an HSBC Advance or Advance Graduate account, and 0.1% for those who do. It does have some savings accounts that are no longer open to new customers, but these pay a higher rate of interest than 0.1%. You can check the interest rate on all HSBC’s savings accounts on its website.
The lowest interest rate you’ll earn on an old Lloyds savings account is 0.05%, while several accounts pay 0.1%. Its Regular Saver and Select Saver pay 0.05% interest, while its Flexible Savings and Instant Gold pay 0.1%. If you have a Lloyds eSavings account, that pays a fraction more at 0.15% if you opened it after 7th December 2015 (more if you opened it earlier). You can find out about interest rates on savings accounts you can no longer open on its website.
Nationwide Instant Access account is still open to new customers. It pays 0.1% interest, no matter how much you have in it. It’s the only account I could find on Nationwide’s website that pays such a low rate. There’s a list of all Nationwide’s savings accounts, and the interest they pay, on its website.
NatWest/RBS – doesn’t have closed accounts as such. It simplified its accounts a few years ago and now it just has three different savings accounts. However, you could still earn as little as 0.1% on its Instant Saver (on balances up to £25,000), its Cash ISA (on balances up to £10,000) or on its Premium Saver if you have less than £10,000. You can find interest rates on all its savings accounts on its website.
Santander’s Easy Cash ISA, which you can still take out, pays just 0.1% on balances up to £40,000. Its eSaver pays 0.15%. You can see the interest rates on savings accounts on Santander’s website.
Quite a few of TSB’s savings accounts that are no longer open are paying interest at 0.2%. One or two accounts pay a higher rate of interest, or pay more if you have a higher balance.
You can check the interest rates on all TSB savings accounts on its website. If you scroll to the bottom of the page, you can see a section called ‘Rates for accounts no longer on sale’. All the interest rates are on a PDF.
How many cash ISAs can you have in one year?
SavvyWoman email newsletters: If you found this information useful why not sign up now to receive free fortnightly email newsletters with money saving tips and help? You can sign up at the top of any page on the website and your details won’t be passed to any other company for marketing purposes.