How to re-evaluate your savings strategy

In the UK, banking loyalty runs remarkably deep. Research from YouGov shows that over a third of UK adults (35%) have stayed with the same bank for more than 20 years. 

For many, sticking with a familiar household high-street name feels like the safest choice.

That psychological comfort could come with an unspoken penalty: the ‘Loyalty Tax.’ High-street banks often offer lower interest rates on easy access savings accounts, frequently falling below the rate of inflation. 

This guide explores how staying loyal could affect the return on your savings over time, and how moving isn’t quite as risky as some believe. 

Small differences in interest rates can affect your return quite dramatically. Here’s what a hypothetical difference between rates, based on real data, on a £20,000 balance could cost over a single year:

• Average Easy Access Account (2.11% AER): Earns £422 in annual interest.
• Raisin UK Top Easy Access Rate (4.05% AER) (representative example from July 2026): Earns £818 in annual interest.

In this scenario, ‘staying put’ costs £388 per year in missed interest earnings. 

Interest rates are quoted gross / AER. Returns may be subject to tax depending on your personal circumstances and Personal Savings Allowance (PSA).

Below, you’ll find the average UK easy access rate offered compared to the top easy access rate offered by partner banks on Raisin UK.

Average UK easy access rates based on data from Finder.com: https://www.finder.com/uk/savings-accounts/inflation-vs-savings 

A NetApp study found that 78% of UK adults stay with traditional banks because they feel their money is safe. It’s totally natural to trust banks you’re familiar with and, conversely, feel more wary about those you don’t recognise. 

However, the UK benefits from a strict regulatory framework and strong consumer protections. 

• Every bank in the UK must be authorised by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). Check the Financial Services register to verify any bank.
• Eligible deposits held with an authorised UK bank are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per banking institution . 

In simple terms, this means that you can hold money with UK-regulated banks with relative confidence that your deposits are protected.

One of the biggest barriers to switching savings accounts is the perceived hassle. Savers often face multiple application forms, repeated identity checks, and separate logins across apps. 

Raisin UK makes it simple. 

From a single intuitive dashboard, you can open and manage competitive savings accounts from over 40 partner banks and building societies in just a few clicks. No paperwork, no extra admin and no fees to open or manage your account. All eligible deposits are covered up to £120,000 per person, per banking institution by the FSCS. Here’s how to get started. 

1. Register in minutes

Create your free Raisin UK Account by providing a few details.

2. Compare top rates

Browse competitive interest rates across a wide range of partner banks and building societies. Choose from fixed rate bonds, easy access savings accounts and notice accounts to build a savings solution that fits your goals.

3. Grow your savings

Open, top up and manage your savings across multiple banks from one easy-to-use dashboard.

Register your free Raisin UK account today to explore competitive rates from our FSCS-protected partner banks and start taking control of your savings.