Millions lost in the High St.

Byline: SYLVIA MORRIS

KATE Lavender, from Sussex, recently switched her savings to Virgin Direct from High Street accounts with both Halifax and Alliance & Leicester.

Accountant Kate says: 'I was appalled at the low rates on these instant access accounts so moved to a better-paying account.' She now earns 5.75 pc (4.6 pc) against 0.25 pc before tax with Alliance & Leicester and 1.9 pc with Halifax.

SAVERS are losing millions of pounds in interest by sticking to the High Street.

Some banks and building societies are paying derisory rates on branch-based instant-access accounts. By switching money to a better-paying account, you can increase your interest fivefold or more.

Popular accounts such as Abbey National Instant Saver, Alliance & Leicester Instant Access, Woolwich Prime Gold and Cheltenham Gold, along with other leading names, are paying less than 1 pc before tax.

Alliance & Leicester's Instant Access account and Woolwich's Prime Gold, which was once sold as 'a high interest savings with instant access' both pay just 0.75 pc before tax even on [pounds sterling]5,ooo. This means that a basic-rate taxpayer with this amount invested would earn a mere [pounds sterling]30 interest each year.

Cheltenham Gold and Bristol & West Select are even worse at just 0.5 pc and 0.1 pc.

These accounts were once flagships, paying top rates of interest.

Now they have fallen by the financial wayside as banks and building societies concentrate on other deals to tempt new savers in.

The clearing banks are not much better. A [pounds sterling]5,000 deposit with National Westminster Premium Reserve pays 2.35 pc (1.88 pc after 20pc savings tax); 2 pc (1.6 pc) in Barclays Instant Saving; 2.5pc (2pc) in Midland Instant Access. At worst you earn 1.35 pc (0.88 pc) with Lloyds TSB Flexible Savings Account.

Better deals are on offer from both Woolwich Card Saver and Halifax Instant Saver.

These accounts are run mainly through cash machines rather than over branch counters and pay a much healthier 4.5 pc (3.6 pc) Accounts run over the telephone or through the post offer even better deals. You can earn 5 pc (4 pc ) or more on [pounds sterling]1 or more. A [pounds sterling]5,000 investment earns interest of at least [pounds sterling]200 after savings tax.

Telephone accounts let you move your money between your cheque account and savings account easily.

Newcomers now have to open the top-paying Prudential Egg account over the internet, but they can run it over both the telephone and internet.

Standard Life plans to introduce internet access on its Direct Access account. A new internet-only bank, First e, promising 'generous rates of interest' plans to launch this year.