Big banks slow to pass on rate rises – how to get a better savings rate today
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Are high street banks taking too long to pass on rate rises? Want to get more interest on your cash? We look at an easy way to get competitive rates.
This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.
15 August 2023
The Bank of England has raised its base rate for the 14th consecutive time, but big banks are barely passing on rate rises to savers. And when they are, it’s by tiny amounts.
In fact, big banks have been so slow to raise savings rates that the Chancellor of the Exchequer raised the issue with banks directly in June. And the Financial Conduct Authority recently announced a 14-point action plan to address the issue.
In the last 18 months, the base rate has risen rapidly – jumping to 5.25%.
In contrast, the average instant access rate dragged up to just 2.24%. This looks even smaller when you consider that the average two-year fixed mortgage rate has risen to 6.83%.
This is costing everyday savers billions.
In summer 2023, there was over
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