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UK Banks Unveil Higher-Yield Savings and Cash Switch Rewards

Banks from NatWest to Zopa are offsetting rate cuts with higher-yield accounts alongside cash incentives to attract savers

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Complicated terms and conditions risk 80 per cent of customers losing out on interest
(Photo: Rosemary Calvert/Getty)
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Overview

  • More than half of UK savers hold £297 billion in zero-interest current accounts, eroding spending power as inflation outpaces returns.
  • Analysis finds over 80 percent of easy-access savings accounts carry strings like tiered rates, withdrawal caps or bonus periods that reduce yields after the introductory phase.
  • Nationwide has rolled out £100 Fairer Share payments to four million members and a £200 switch reward for customers opening a current account.
  • NatWest and Santander are offering switching bonuses up to £180 alongside perks such as high-rate digital savers and bill cashback to win new clients.
  • Online banks and savings platforms now offer rates of 4.5 percent or more, including Atom’s 4.75 percent easy-access account and cash ISAs paying up to 4.92 percent.