Now 40% of easily accessible savings accounts are not accessible in an office

New data shows that a growing number of easy-to-access savings accounts cannot be opened in a branch.

Today, 40 percent of easily accessible accounts do not offer access to branches, according to figures from Moneyfacts Compare.

And this trend is growing. The number of savings accounts without branch access has increased in the past five years from 33 percent to 29 percent ten years ago.

Easily accessible accounts that provide online access are on the rise. More than 69 percent offer online access, compared to 60 percent five years ago and 54 percent ten years ago.

A report from the Yorkshire Building Society shows that more than a fifth prefer branch services for their everyday banking needs, and more than a quarter visit their local branch at least once a month.

As banks continue to close branches, access to cash for those who prefer to handle their general day-to-day banking needs in person is becoming increasingly scarce.

Last week, Lloyds Bank announced it would cut around 1,600 jobs across its branches in a massive company-wide shake-up that will see more online services.

Why does this matter?

There is a warning here. Major banks that offer easy-to-access branch accounts are notorious for offering rates much lower than those of online providers

Our analysis last November found that five of Britain’s biggest banks paid an average of 1.85 per cent on £10,000 held in an easy-access account.

The most accessible account available pays a rate of 5.15 percent. It is offered by Earl Shilton Building Society, which provides branch access, as building societies often do.

However, it only has two locations, and is Britain’s second smallest mutual fund.

Many of the other providers with a top rate of 5 percent or more can only be accessed online.

Rachel Springall, financial expert at Moneyfacts Compare, said: ‘Savers who prefer to manage their account in a branch and save their money with one of the biggest high street banks will be sacrificing the interest they earn on their savings.

‘Savers may only earn 1 per cent, or 3 per cent on average, but in reality they can earn around 5 per cent on the best easy-to-access accounts.

‘A saver earning 1 per cent for a year from a £20,000 pot would take home £200 in interest, while earning 5 per cent would earn £1,000.’

For example, many older savers can only manage their finances in a branch for accessibility reasons.

And for some, it’s simply that they want to go to their local branch and deposit or withdraw their money in whatever manner they choose with staff they know and trust.

Part of a broader debate

Apart from savers who prefer to manage their accounts in a branch, there is a wider debate about the overall accessibility of cash, which is regulated by the Financial Conduct Authority (FCA).

Late last year, the FCA proposed new rules to protect access to cash in Britain.

Under the proposals, designated banks and building societies will have to assess gaps in access to cash.

These assessments will take into account local factors such as demographics and transport.

When banks and building societies identify gaps in access to cash, they will have to address them.

The FCA’s new rules won’t become final until later this year, but it’s worth noting that they don’t have the power to stop bank branches closing.

Springall says: ‘Those concerned about losing their local branches would be wise to speak to their provider to discuss alternative locations or consider switching their accounts to an alternative brand that can meet their everyday banking needs .’