Experts are warning that
savers might not be guaranteed full benefits from
base rate increases, with many
savings providers failing to pass on higher
rates to their customers.
Following the surprise
interest rate increase last month many savings providers
adjusted their rates accordingly, offering a 0.25 per cent increase
in line with the
Bank of England's decision.
However a number of providers have not done so, prompting concerns
over the
savings rates on offer to UK consumers. Rachel Thrussell of
Moneyfacts explains that many savers will be missing out on higher
savings account rates .
Providers have been selective about the
accounts and / or tiers on which they increase rates, she
stated.
Most notably their best buy or core products tend to receive
the full rise, whereas their already lower paying account tends to
suffer via a smaller increase or in some cases no increase at
all.
Research indicates that a quarter of UK saving accounts pay less
than 2.7 per cent of the current inflation rate while more than
half pay les than 4.2 per cent. That said, more than 20 per cent of
savings accounts are offering
interest rates in excess of the base rate .
