Savings – base rate effect finally over

Rachel Thrussell, Head of Savings at Moneyfacts.co.uk, comments: “Almost five weeks after the last base rate increase providers are still changing their rates. The July rise has been particularly slow to filer through. Perhaps providers were holding fire until after the August MPC meeting before their final decisions were made.

“Changing interest rates can be a costly time for providers, needing to amend their systems, publish new rates, change their marketing literature and informing their customers.

“82% of providers opted for either up to 0.25% or the full 0.25% increase, while the rest chose to increase some accounts or tiers by slightly more. However seven providers are either still to announce or will not be passing on the rate rise.

“Now that rates have settled down it’s the perfect time to review your savings and perhaps switch providers. There are some great deals to be found some over 6%, but with the average rate nearer 4%, too many savers are still receiving a poor deal.”