Martin Lewis details free cash deals for those switching banks
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Branch-based accounts are saving accounts which can be opened, managed and closed within a local bank branch.
However, many of these accounts do not have the same features as current accounts and include limitations on how times money can be transferred out of the account.
Over the past month, the rate of inflation has risen from 2.1 percent to 2.5 percent, which is the highest it has been in three years.
Despite this, the current branch-based accounts from Building Societies offer a better deal than most high street banks.
One of the most recently announced accounts is from Coventry, the country’s second largest Building Society.
Its new Limited Access Saver is available through its branches and pays a rate 0.5 percent on £1 or more.
Launched at the same time as Coventry’s Limited Access ISA, the branch-based savings account limits the amount of times money can be withdrawn to six times a year.
Any further account withdrawals will result in you paying a fee equivalent to 50 days’ of interest on extra cash you take out.
On the new accounting offering, Daniel McDonald, a Senior Savings Product Manager at Coventry Building Society, said: “Our new Limited Access products are great options for savers who want the flexibility to access their money through any channel, whether that be online, over the phone or in one of our branches.
“Those who don’t expect to need to dip into their savings more than six times a year can benefit from a higher interest rate, while still having the option to access the funds if they need to.”
Leeds Building Society
Last September, Leeds Building Society announced the launch of a similar product with its Double Access Saver.
The account pays 0.8 percent, however customers are limited to two withdrawals per year without notice or loss of interest.
In order to take out other withdrawals, you must pay a fee equivalent to 50 days’ of interest on money that is taken out.
If the account falls below its minimum operating balance of £5,000, the rate drops to a low of 0.05 percent.
Matt Bartle, Director of Products at Leeds Building Society, explained: “When considering different savings accounts, there’s always a balance to be struck between the interest rate and ease of access.
“With so much in life seeming more uncertain than usual we’re seeing increasing numbers of savers looking for easy access accounts, with people seeking the reassurance of being able to get to their nest egg instantly, without penalty.”
He added: “Our new Double Access products offer a higher return than an easy access account without tying up savings for a fixed term.”
For those who still prefer to deal with their finances solely online, Nationwide offers a One Year Triple Access Saver at a rate of 0.45 percent.
Both Nationwide’s savings and ISA accounts allow for up to three withdrawals over the space of a year.
Any further withdrawals will cause the interest rate to freefall to 0.01 percent for the rest of that period.
When discussing the benefits of the account last year, Tom Riley, the Director of Banking and Savings at Nationwide Building Society, commented: “The pandemic has impacted many people’s finances and it has highlighted the importance of having a savings nest egg that you can access if needed.
“Putting aside even a small amount on a regular basis can soon add up and help people be more financially resilient in future.”
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