Finance experts have told savers they can earn hundreds more per year by making a simple switch to a building society account. Interest rates are currently high, but many savers have not switched accounts in years, meaning their rates could be much lower than inflation or the market average.
Building societies offer boost
Moneyfacts Group plc conducted an analysis and concluded that building societies offer savers a much-needed boost as they are encouraged to review their current rate during UK Savings Week. It found that a £10,000 balance held for one year would earn £422 with the average top-rate building society account, compared with £116 with the average big bank easy access account.
Additionally, building societies paid savers an extra £2.1 billion in interest in 2025 compared with the average rates offered by the UK’s largest banks.
Experts warn of missed earnings
“Savers could be missing out on hundreds of pounds simply by leaving their cash in a lower-paying account,” warned Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk.
The analysis also found that, after accounting for inflation, a £10,000 balance in an average big bank account would lose value in real terms, while building societies can help savers protect their hard-earned cash.
Impact of switching
“UK Savings Week is a great opportunity for savers to review where their money is held, because the difference between savings rates can have a significant impact on returns over time,” Caitlyn added.
“In 2025, building societies paid savers an additional £2.1 billion in interest compared with the average rate offered by the largest banks, highlighting the important role they play in driving competition.”
She continued: “A typical big bank easy access account pays just 1.16%, whereas the top rate building societies pay 4.22% on average. On a £10,000 balance held for a year, this equates to a meaningful £306 difference.”
“The impact becomes even more important when inflation is considered. Savers who remain loyal to uncompetitive accounts risk seeing the real value of their cash eroded over time. At a time when households are under pressure, improving savings outcomes is not always about putting more money away each month. It can be about saving smarter by making sure their cash is earning a competitive rate.”
“Building societies continue to play an important role in the savings market, frequently offering competitive returns and rewarding savers who are proactive with their cash. Just because a balance is growing on paper, it doesn’t always mean savers are better off in real terms. To avoid missing out, savers should compare rates regularly across the whole of the market, and switch to a more competitive deal if they find their hard-earned cash isn’t being rewarded.”
