Digital banks are winning the savings rates war, offering much higher returns than those on the high street.

Chip and Zopa, two digital only providers, are giving customers some of the best rates for easy access banking customers.

The best easy access rate on the market is with Chip offering 3.4 per cent while Zopa is offering 3.21 per cent return. Tandem, another digital only bank, is offering 3.2 per cent.

The accounts give savers the ability to withdraw funds without any restrictions, making them potentially more attractive than fixed accounts where people have to lock away their funds for a long period of time.

However, no easy access accounts can match the current base rate of 4 per cent.

It comes after the big four banks (HSBC, Lloyds, Natwest and Barclays) were criticised by MPs for not passing on higher interest rates to its saving customers but passing on the hikes to its mortgage customers.

The Treasury Select Committee quizzed bosses on why returns were not matching the interest rate for savers while giving themselves a huge pay hike.

NatWest Group’s chief executive received £5.2million in 2022 – up 46 per cent from last year – and HSBC’s group chief executive received £5.6million – a 14 per cent rise in his pay package.

NatWest’s margins also increased by 24 per cent, Lloyds Banking Group’s are up by 16 per cent and Barclays have increased 13 per cent.

Harriett Baldwin MP, Chair of the Treasury Committee, said: “While consumers are always advised to shop around for the best deals, it is difficult to avoid the conclusion that our biggest banks are taking advantage of their most loyal customers to increase profits and CEO pay.

“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.”

More from Money

The best savings deals

For those looking to maximise their returns, savers should ditch the high street banks and go digital. Below, Moneyfacts gives the best offers currently on the market.

Best easy access

Chip – 3.40%

Yorkshire Building Society – 3.35%

HSBC – 3.25%

Zopa – 3.21%

Tandem – 3.2%

Family Building Society – 3.10%

Best one year fixed

Al Rayan Bank – 4.37%

Al Rayan Bank – 4.31%

SmartSave – 4.31%

Atom Bank – 4.30%

Tandem Bank – 4.25%

Allica Bank – 4.25%

Best two year fixed

Al Rayan Bank – 4.47%

SmartSave – 4.46%

Atom Bank – 4.45%

Allica Bank – 4.40%

Coventry Building Society – 4.35%

Vanquis Bank – 4.35%

Best notice accounts

Investec Bank plc – 3.55%

Allica Bank – 3.50%

Moneybox – 3.46%

Bank of London and The Middle East – 3.44%

Allica Bank – 3.40%

Darlington Building Society – 3.40%

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