Savers 'failing to get benefit of rate rises'

Many savings accounts are failing to pass on recent interest rate rises to their customers, according to new data.



Figures from fund management group Managing Partners Limited found that more than half of standard and online savings accounts had not passed on the most recent 0.25 per cent increase in the Bank of England's base rate 30 days afterwards.

The Bank's monetary policy committee has increased interest rates three times since August, most recently to 5.25 per cent in January and many savers will have been looking forward to seeing the benefits of this on their nest eggs.

However, UK savings accounts have only increased their interest rates by an average of 0.1885 per cent since the most recent rise.

Managing director of Managing Partners Limited Jeremy Leach warned: "Many savings accounts have been poor at passing on increases to the Bank of England base rate, which means that they are offering poor value."

With the end of the tax year approaching, many savers will be putting their funds in Isa accounts in order to make the most of their tax-free allowance. However, Nationwide Building Society found that more than 60 per cent of the UK population still do not have an Isa.

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