The Bank of England raised rates from 0.25 percent to 0.5 percent on November 2. The news came as a welcome boost for savers starved of good news a decade after the financial crisis.
And the BoE official said savers who are yet to benefit from the Bank’s 0.25 base interest rate should shop around and find a better deal if their bank refuses to pass the benefit on to customers.
Despite having three weeks in which to implement the changes just one in seven savings accounts has followed the BoE’s initiative to help savers. Unsurprisingly lenders have shown more urgency in raising their mortgage rates.
Tax-payer owned RBS has not passed on the full rate rise to all customers alongside Barclays, Lloyds, Santander, Halifax, NatWest, HSBC.
Sir Jon Cunliffe, deputy governor of the Bank, berated MPs over “lags” between BofE hikes and the subsequent changes in high street savings rates offered to British savers, adding, “the Government has put a lot of effort into making it easier for bank accounts to move.”
Bank governor Mark Carney said at the time of the announcement: “We expect it to be passed on. Obviously we will be watching closely.”