Not one high street bank is paying customers the latest base rate of 0.75%
Some high street banks have increased savings rates by a dismal 0.05 per cent despite the base rate rising by 0.25 per cent to 0.75 per cent
IT'S been one month since the Bank of England hiked the base rate by 0.25 per cent to 0.75 per cent - but not a single high street bank has passed on the full rise to savers.
Rates on easy-access accounts at some of the high street's biggest banks have gone up by a measly 0.06 per cent on average since the start of August, taking the average rate paid to 0.59 per cent today.
Bank boss Mark Carney announced a 0.25 per cent rise to the base rate - which is used by lenders to set interest rates - at the beginning of August.
But in reality, some of Britain's biggest banks are dragging their feet when it comes to passing on the benefits to customers.
Money experts over at comparison website found that not a single high street bank has upped the rates on their easy-access savings accounts to the full 0.75 per cent base rate level.
Meanwhile, the Bank of Scotland, Halifax, and Santander are the only major players to have increased the amount of interest earned on savings up to £10,000 by the latest base rate rise of 0.25 per cent.
What is the base rate?
SIMPLY put, it’s the country’s official borrowing rate, and is the rate the Bank of England lends to all the other banks in the UK.
It is incredibly important as it is a guide for lenders on what rates they can offer – and therefore it impacts mortgage rates, credit cards, loans and savings.
It was stuck at record low levels for a decade because of the state of the economy after the financial crash in 2008.
It was raised back to 0.5 per cent last November, followed by a further rise to 0.7% in August 2018.
It brings Bank of Scotland and Halifax's rates up to 0.45 per cent, and Santander's to 0.4 per cent.
But you can earn more with HSBC, which pays 0.55 per cent - even though it only increased the interest on its Online Bonus Saver by a dismal 0.1 per cent following the base rate rise.
Barclay's has passed on the lowest rate rise of 0.05 per cent to new Everyday Saver account holders - increasing the rate from 0.2 per cent to 0.25 per cent.
In fact, the base rate has risen by 0.5 per cent since November last year but Barclays has only increased its easy access savers rate by 0.2 per cent over this time period.
But it's not all bad news for savers because other lenders, such as Sainsbury’s Bank, Beverley Building Society and Vernon Building Society have passed on the full 0.75 per cent amount.
Rachel Springall from Moneyfacts said: "Savers may have needed this jolt of bad news to come to the realisation that better returns can be found with the more unfamiliar brands.
The latest banking news
"And as 28 per cent of the easy access account market fails to beat 0.75 per cent, they should take time out to study the best buy tables and switch if they are getting a raw deal."
While savers are still to see the benefits of a rate rise, banks and building societies have been quick to hike the interest rates on mortgages.
Last time the base rate rose by 0.25 per cent to 0.5 per cent, only handful of banks passed on the much needed rates to savers.
Mark Carney previously said there will be "something more than three" low rises over the next few years, which means it's only a matter of time before banks put up the prices.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516. Don't forget to join the for the latest bargains and money-saving advice.