Gen Z are embracing "old-fashioned" banking - what does this mean for you?

Martin Lewis urges customers to switch bank accounts

Savings rates are low at the moment as the Bank of England holds the base rate at 0.1 percent. Many savers claim to despise the current low interest rate environment but according to recent research from Moneyfacts.co.uk, consumers appear to be happy to keep their money in accounts that pay barely anything.

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According to its findings, several top rate deals have been cut on both easy access and notice accounts.

But despite this, easy access accounts remain a "firm favourite" among savers, as balances now account for 58.7 percent of the savings market (excluding current accounts), up from 55.6 percent last January, according to data from CACI analysed by Paragon Bank.

Additionally, despite the low interest rate environment, a study from Wealthify suggested 43 percent of consumers are happy with how their cash savings perform and one in three (38 percent) were not confident with investing, with many continuing to turn to cash savings instead.

According to Moneyfacts.co.uk, the following top easy access and notice savings deals saw the biggest cuts since April 1:

Insurance Loans Mortgage Attorney Credit LawyerICICI Bank UK: 95 Day Notice Savings Account - cut from 0.55 to 0.35 percent Aldermore: 30 Day Notice Issue 12- cut from 0.40 to 0.35 percent Chorley Building Society: 30 Day Notice Account Issue 3 - cut from 0.50 to 0.40 percent Virgin Money: M Plus Saver - cut from 0.50 to 0.35 percent Yorkshire Building Society: Annual Access Account Issue 8 - cut from 0.50 to 0.45 percent Teachers BS: Teacher Home Saver and Union Home Saver (35 Day Notice) - cut from 0.60 to 0.50 percent Moneybox: 95 Day Notice Account - cut from 0.60 to 0.50 percent The Melton BS: 30 Day Notice Issue 2 and Online 30 Day Notice Issue 2 - cut from 0.30 to 0.20 percent OakNorth Bank: 120 Day Notice Deposit - cut from 0.58 to 0.48 percent OakNorth Bank: 90 Day Notice Deposit - cut from 0.56 to 0.46 percent OakNorth Bank: 35 Day Notice Deposit - cut from 0.40 to 0.30 percent Monmouthshire BS: Escalator Instant – Issue 2 - cut from 0.45 to 0.25 percent

READ MORE: State pension: Could you boost your sum by £2,340 per year?

Gen ZGen Z banking habits are beginning to form (Image: GETTY)

Rachel Springall, a Finance Expert at Moneyfacts.co.uk, examined these figures and urged savers to act fast where they can.

She said: "There may well be many accidental savers out there who are not prepared to take the risk to invest their cash and instead turn to a simple savings account, however it’s important these savers don’t debate the top rate deals for too long. It’s also wise for savers to think about whether they need quick access or could give notice for a higher return, as there are many notice accounts worth considering.

“Easy access accounts continue to be popular, but savers could get a better return if they are prepared to leave their pot for a few months. The top rate is 0.65 percent from Moneycorp Bank on its 90 Day Notice Account, which is 0.20 percent more than the easy access account from Kent Reliance at 0.45 percent, the top rate that allows multiple withdrawals and has no restrictions.

"These are both great deals to consider but there is no guarantee they will last for long, especially with recent weeks’ cuts on other deals indicating volatility.

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