Only one in ten banks increases savings rates after the increase in the base rate

Savers have been warned that they will be bitterly disappointed if they hold out hope for an increase in interest in the coming weeks.

Only one in ten banks increased their interest in variable rate agreements after the Bank of England decision to raise the base rate to 0.75 percent a week ago.

On the contrary, many have quickly taken the opportunity to increase costs for borrowers in a blow for homeowners that could cost them an extra £ 190 per year, on the average mortgage.

However, to shame the banks, there are two small construction companies, Beverley and Monmouthshire, which have increased all their savings rates by 0.25 percent.

Only a fraction of banks have transferred the interest rate increase to savers (Gareth Fuller / PA)

Only a fraction of banks have transferred the interest rate increase to savers (Gareth Fuller / PA)

Only a fraction of banks have transferred the interest rate increase to savers (Gareth Fuller / PA)

Already, 28 percent of lenders have increased costs for mortgage clients a week after the decision on the base rate, according to the Moneyfacts information website.

HSBC and Barclays have already slapped mortgage clients with an increase, but have no plans to do so in savings accounts.

Santander has announced that its clients will experience a jump in variable interest rates and follow-up from the beginning of next month.

Lloyds Bank has also set September 1 as the date on which its 0.25 percent increase will have an effect on its variable mortgages. RBS still has to make a move.

Of those who have responded to the BoE decition, only a fraction of the savings providers have passed the quarter percentage increase to their variable rate savers, according to Moneyfacts.

The patience of the savers will be tested further, with some delays until the end of August.

Others that have increased their rates, either partially applied the increase or only increased the interest in some accounts.

The smaller construction societies have put the banks in shame, fast to help savers the momentum.

The construction companies of Beverley and Monmouthshire have increased their interest in variable rate savings after the move to 0.75 percent.

The changes will take effect on August 2 and September 1, respectively.

Skipton BS has raised the rate in the accounts opened by new clients, but the savers will have to wait, since it has said that "it is considering passing the increases to those too".

TSB is the largest player to announce an increase.

Your customers will benefit from a 0.1 percent increase early next month.

Children's accounts are the only offers that benefit from an increase of 0.25 percent.

Co-operative Bank has made a similar move, adding between 0.1% and 0.28% to the accounts.

Rachel Springall, a finance expert at Moneyfacts says: "It will be disappointing news for many savers to know that they can not benefit from the 0.25 percent basic rate rise."

"It's a real shame, and it just shows why savers should think about changing and not holding their breath for an increase in the rate on their account."

The delay in benefits for savers, compared to the rapid increases in costs for borrowers, was criticized by the head of the influential Select Committee of the Treasury of the deputies.

President Nicky Morgan told the Times: "It's no wonder that our banks have so much work to do to rebuild trust among customers when they ignore the first opportunity to give something back to savers, while moving quickly to increase costs for borrowers. . & # 39;

There is still time for more, however, as banks often drag their feet after an increase in the interest rate.

Most banks took about a month to review their accounts and announce any increase after the announcement of the BoE last November, when rates rose to 0.5 percent.

But this is another warning for the savers to abandon the big banks that do little to reward them for their loyalty.

According to the Moneyfacts data, even if the street giants increase their savings rates by 0.25%, most accounts will still not offer competitive offers, or even match the base rate of 0.75%.

In recent years, the Loan Financing scheme has provided banks with cheap loans, which means that they no longer need to look for deposits from savers to finance their loans.

The only competition in the market during this period of calm came from defiant banks such as Atom Bank, Paragon Bank, French-owned RCI and Ford Money, which offer higher rates to attract more customers and grow their businesses.

Where to find the best savings rates

Currently, the highest rate on offer for easily accessible savers is 1.4% of Coventry BS. The account allows only three withdrawals per year, and the rate includes a one-year bond and 0.4%.

Wyelands Bank launched two new fixed-rate accounts this week. Pay 2.15 percent in one year and 2.25 percent in two years.

A three-year fixed-rate bond at the best available rate is Charter Savings Bank with 2.36 percent followed by BM Savings and Hampshire Trust Bank with only 0.01 percent below.

The maximum rate of five years currently on offer is also Charter Savings Bank at 2.68 percent.

If you want a tax-free account, the best deal savers can get instant access if it's 1.35% of Virgin Money and Al Rayan Bank.

Al Rayan also takes the lead in two and three years with 1.6 percent and 1.8 percent, respectively.

Shawbrook Bank ranks first in three years at 1.85 percent and United Trust Bank has the highest rate of five years that pays 2.25 percent.

THIS IS THE TAPE OF THE BEST MONEY SAVING OFFERS

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