Loyal savers punished

LOYAL savers with money tied up in Britain’s biggest banks are being rewarded with annual returns of as little as 10p on £1,000.

A report has revealed the rock-bottom interest rates at giants including Lloyds, Barclays, HSBC, Royal Bank of Scotland/Natwest, Santander, and Nationwide. Savings rates fell again after the Bank of England cut interest rates to a record low of 0.1pc to boost the economy during the crisis.

Financial info firm Moneyfacts found Lloyds is the worst offender, paying savers just 0.02pc on average, or 20p on £1,000 saved for a year. Santander pays 0.1pc on average with RBS offering 0.15pc. The average savings account in the UK pays 0.32pc.