Do you keep your savings with your high street bank?

Millions do because they feel safer, even though other smaller banks and building societies offer just as much protection for your money.

This is because they all benefit from the same £120,000 Financial Services Compensation Scheme limit, meaning your cash is safe up to this amount.

So rather than stick with your current account provider, you would do better to head over to your bank’s offshoots, which pay better rates – but your money still ends up with it.

For example, Lloyds Bank is offering a lousy 3.15 pc on its one-year fixed-rate bond. But under its online offshoot, MBNA Bank, you scoop a much better 4.36 pc – one of the top rates on offer.

Similarly, Tesco Bank gives you 4 pc on its one-year fixed-rate bond or 4.16 pc on its equivalent fixed-rate cash Isa.

Your money in Tesco’s savings accounts ends up with Barclays, which only offers 3.3 pc on its bond and 4 pc on its Isa.

Saga, for the over-50s, is paying 4 pc on its Easy Access Account including a 1.25 percentage point bonus for a year for new savers. It has just teamed up with NatWest, which is where your money ends up if you open an account now.

You’ll need to move your money after a year. But even if you don’t, you’ll still see more than double the rate NatWest pays on its easy-access Flexible Saver, which offers just 1 pc on balances of up to £25,000.

Cahoot, a division of Santander, is also a better bet. It pays 4.05 pc on its Simple Saver against just 2 pc on Santander Easy Access Saver. Once again, you need to move your money after a year with Cahoot, or you end up earning just 1 pc.

Keep a tally of any money you have saved in a bank and its offshoot. For example, if you have savings with MBNA and money in a Lloyds account, you will only be protected for up to £120,000 across the two banks if they collapse. The same applies to Barclays and Tesco, along with Saga and NatWest and Santander and Cahoot.

From April 2, it will also apply to Nationwide and Virgin Money.

Nationwide, which bought Virgin Money in October 2024, is combining both businesses so your money will end up under Nationwide for compensation.

Virgin generally pays better rates. For example, it has just hiked its one-year fixed-rate Isa to 4.22 pc while Nationwide pays 4.05 pc.

There has been a flood of new taxable easy-access accounts – but the majority come with restrictions on how many withdrawals you can make in a year.

Providers offer these accounts because they can pay higher rates on them – the fewer withdrawals you make, the cheaper it is for them to run the account.

Break the rules and you’ll get an interest penalty.

Some drop the interest rate sharply for the remainder of the year while others charge you to make further withdrawals.

Top rates currently come from Vida Savings, Virgin Money and Coventry Building Society.

Both Vida’s Double Access Saver and Virgin Money’s Double Take E-Saver allow two withdrawals and pay 4.16 pc.

Coventry all but matches them with 4.15 pc and allows a more generous four withdrawals, but the account only runs for a year.