Savers still short changed

July saw another Bank of England rate rise, but it’s still the same old story with banks taking too long to pass on the increase to savers – or not passing anything on at all.

Analysis from price comparison website moneysupermarket.com reveals over three weeks after the base rate increase, 47 per cent of providers are yet to announce their intention to pass on any increase to savers.

Of the 59 banks and building societies to have increased savings rates, over a third (36 per cent) passed on less than the 0.25 per cent, and it took an average of 21 days to do so.

Kevin Mountford, head of savings and current accounts at moneysupermarket.com, said: “Providers need to pull their socks up. Nearly half of the banks and building societies have yet to even declare their intention to do so – and there’s no saying they will.

“The delaying tactic is incredibly sneaky - by holding off the rate change, providers are avoiding paying out a whopping £6 million per day in interest.

“Not all banks are in the dog house though, with Capital One passing on the rise within a day at a good rate. The worst offenders should follow suit.

"If the reason for the long delays of others is operational then banks and building societies should backdate the rise so their customers benefit. It is common practice for providers to credit people's accounts from the date cheques go in, so this would be very much the same principle.

"Savers need to keep an eye on providers’ reactions to the base rate and act with their feet if necessary to get the best deal they can.”