State Pensioners Urged to Act Now for Free £777 Savings Boost

State pensioners and savers are being urged to take action as many are missing out on a potential £777 boost by keeping their money in low-interest high street accounts.

New research shows that savers could earn up to £777 more per year by transferring £25,000 from a traditional bank to a higher-interest easy access account. According to Moneyfactscompare.co.uk, the gap in returns is due to the significant difference between typical high street rates and those offered by challenger banks.

Major banks currently offer an average rate of 1.39%, which generates only £347.50 a year on a £25,000 balance. After factoring in inflation, this actually results in a real loss of £602.50.

In contrast, the best easy access accounts available on their platform can pay around £1,125 annually — giving savers a real gain of £175 once inflation is considered.

Adam French, Head of News at Moneyfactscompare.co.uk, warned that big banks are providing "paltry returns" and urged savers to fight back by switching to better deals. He added that comparing rates is essential whether you’re saving for security, a major purchase, or a special event.

Richard Ward, Sales and Marketing Director at the company, said many consumers are still losing out or seeing their savings eroded by rising living costs. He hopes their new TV adverts will encourage people to check their accounts and consider moving to a higher-paying option.