Savings: Britons can switch to get up to 7% after interest rate rises

theguardian.com:

M Ps this week had a go at bank bosses about their stingy savings rates, particularly on instant access accounts, saying that they seemed to be “taking advantage” of loyal customers. But you don’t have to put up with rubbish rates, as there are savings accounts out there paying up to 7% interest.

The official Bank of England base rate is now 4%, yet the returns offered by some widely held accounts are lagging way behind. The Barclays Everyday Saver easy access account offers only 0.55% interest and Santander Everyday Saver pays 0.6%, while the Lloyds Bank Easy Saver is offering only 0.65% unless you have got £25,000-plus stashed away.

Last month, MPs on the Commons Treasury committee grilled bosses of the four largest UK banks (Barclays, HSBC, Lloyds and NatWest), and this week they wrote to them to ask why, when interest rates have risen so many times, they were all offering easy access savings accounts paying less than 1% interest.

Harriett Baldwin MP, the chair of the committee, said: “The most powerful tool consumers have is to take their money elsewhere. But the banks also have a responsibility here. They need to step up and offer our constituents reasonable savings rates.”

If your money is earning a pittance, now is the time to switch to a better-paying account.

These offer some of the best interest rates. Typically, you put aside some money each month for a limited period of time. You usually have to have a current account with the bank offering the product.

First Direct’s Regular Saver pays an eye-catching 7% interest, fixed for 12 months. It lets you save between £25 and £300 a month – so up to £3,600 a year – and you can change the amount of your standing order at any time. However, you can only withdraw your money