Savers not benefiting from increased Base Rate
Many savers with larger balances are not benefiting from the Bank of England’s decision in July to increase the Base Rate by a 0.25% to 5.75%, according to Investec Private Bank.
It has revealed that between 27 July and 27 October, 60% of accounts paid less than 5% interest for balances of £25,000, with the average rate was 4.67 per cent, up 0.41% on the previous quarter (27 April to 27 July), which saw the Bank of England increase the base rate by 0.5% to 5.75%.
Linda McBain, head of banking at Investec Private Bank, said: “It’s essential that savers with larger deposits find accounts paying consistently high rates of interest. Too many savers are losing out on potential returns by leaving their deposits with banks and building societies that are paying derisory rates of return.
“Our latest Index shows savers need also to be aware that Base Rate increases do not necessarily translate into higher interest rates on their savings accounts. They should check that the July Base Rate increase has been reflected in their own accounts.”