New customers 'frozen out' of online savings accounts

Customers who are following industry advice to shop around are being frustrated as they try to find better rates for their savings accounts by looking online.

Some banks are refusing to let new customers apply online for savings accounts, giving only existing customers that option, claims research by Global Review.

This policy means that new customers are unable to apply for the favourable rates of interest that banks offer online.

Earlier this month th Moneyfacts website revealed that there can be up to a two per cent difference between the rates that banks offer on the high street and rates they offer online.

But research by Global Review showed that visitors to the Lloyds TSB, Barclays and Nationwide will find that they are being frozen out by the banks who are only offering online savings accounts to customers who already have accounts with them.

Even banks who do allow new customers to apply are not making the process easy, often failing to mention what documentation is necessary or how long the application will take to process.

Global Review gave only NatWest and Halifax a score of over 60 per cent on the quality of the information provided to help applicants.

Adam Goodvach, director of Global Reviews, said: "A greater alignment of customer needs with what institutions offer is the challenge lying before them."