Research from Savings Champion revealed that since the launch of RCI Bank’s Freedom Savings Account, which pays 1.45%, easy access rates have risen by 18%.
One month prior to launch, the average easy access rate stood at 1.34%, before increasing to 1.59% three months after RCI Bank entered the market.
Virgin Money, Tesco Bank and Post Office all hiked rates last summer, however these are now beginning to drop as the prospect of a rate rise recedes.
Susan Hannums, Director at Savings Champion, said: “The research speaks for itself, there’s no doubt that when RCI Bank launched into the UK savings market a year ago, they rattled the cages of the saving providers and brought with it the competition that was so desperately needed. Savings rates had been in the doldrums up until then but the launch of RCI’s Freedom Savings Account boosted the easy access market, helping savers get a much needed better return on their cash.”
Steve Gowler, CEO of RCI Bank, added: “The launch of our Freedom Savings Account last year clearly had a positive impact on savings rates across the board, and a host of other providers then drove up their rates. This means savers benefited in more ways than one, as they then had a range of providers with stronger interest rates to choose from. Last month’s CMA report into the high street banks highlighted the need for greater competition within the UK banking sector, and we passionately believe in driving better rates for consumers. The analysis is testament to what one provider can accomplish in just a year and we’re thrilled to still offer all our existing and new customers the current best easy access savings rate.”
