Over four in five (82%) easy access savings accounts offered by the UK’s main current account providers have some form of restriction attached, according to research by Spring.

Analysis of easy access accounts offered by 17 current account providers in the UK found that only 10 of the 56 accounts offered were classed as “pure” easy access – with no limits, fees or restrictions.

Of the easy access accounts analysed, Spring revealed that 34% had tiered interest rates that either dropped or increased above a certain balance threshold, and 29% came with withdrawal restrictions. The findings also showed that 16% of these products were only available on fee-paying accounts, while 9% had a bonus built into the headline rate.

The average interest rate offered across the pure easy access accounts stood at 2.04%, falling to 1.24% for accounts offered by the UK’s big five banks.

Spring also highlighted that savings accounts offered by current account providers dominate the savings market. Recent analysis by the FCA found that 76% of adults with a savings account held that account with their main or sole current account provider, a trend more prevalent in those aged 35 to 44 (86%).

Spring’s managing director of Savings, Derek Sprawling, said: “Over three quarters of adults with savings hold that money in an account offered by their current account provider, but they are suffering from poor choice and a myriad of restrictions, either sacrificing access to their money, seeing the rate drop if they save above a certain amount or only generating a decent return if they hold a significant balance.

“Given the restrictions on these accounts, it’s no surprise there is a significant amount of cash languishing in accounts offering a poor rate of return.”

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