Millions of savers are already enjoying higher interest rates as banks and building societies react to last week’s Bank of England base rate rise at record speed.
Within hours, four of the five largest building societies and HSBC had announced better savings rates.
Firms typically take weeks to increase rates for savers, while passing on higher rates to borrowers on variable-rate deals almost instantaneously. However, they are under heavy scrutiny from the regulator.
Response: Within hours of the latest Bank of England base rate hike, four of the five largest building societies and HSBC announced better savings rates
There has been a deafening silence so far from Barclays, NatWest, RBS and Virgin. Virgin Money still pays some savers in its old easy-access accounts a paltry 0.25 per cent.
Yorkshire BS will increase rates tomorrow, while Skipton and Coventry will pay more from Monday, and Nationwide from September 1.
HSBC will raise its Flexible Saver rate by the full 0.25 percentage points from tomorrow — but to a lowly 2 per cent.
On Monday, Lloyds and Halifax announced rises, passing on between 0.15 and 0.3 percentage points.
But the rates are below what you can earn elsewhere. Tandem Bank raised its Instant Access rate to 5 per cent, including a 0.35-point bonus payable for a year.
