Saga secure savings passes on interest rate hike to savers

Following the Bank of England’s expected decision to raise base rate by 0.25% to 5.50%, Paul Green of Saga comments: “Following today’s (10 May 2007) announcement by the MPC to raise interest rates to 5.50%, we are pleased to announce that thousands of Saga Secure Savings customers will benefit from the full base rate increase from 1 June 2007, with our AER going up to 5.25%.

“We are also calling on every major financial institution to follow suit and pass on the full benefits of a hike in interest rates to all of their savers. They typically increase rates for their borrowers following any rate rise by the full amount, and we don’t see why it should be any different for diligent savers.”

The Saga Secure Savings Account is securely linked to the Bank of England base rate for the life of the balance.