To think banks are not passing on interest rate rises to savers?

[Upsizer]

It’s really annoying to me that the banks are not raising savings accounts rates in line with interest rate rises. Isn’t this going to scupper the whole point of interest rates going up?

I’d need to change savings accounts every month at the moment to try and keep up with a decent deal! And even that is less than the current base rate. Who has time for that?

AIBU to think the banks are just raking in profit and not actually passing rises onto savers, which is sort of the POINT?

Nationwide have been pretty good, 4% on a fixed has gone up to 4.5% 1 yr
Loyalty isa is 3.9%

Santander is 4.25% cash savings

But yes agreed it's pretty poor how slow they've been

Chase updates their interest rates hours after the BoE announcements.

You need to switch banks. I get 3.3% on my instant access savings account, no deposit limits or restrictions on withdrawals.

Better interest rate deals are out there but they're often restricted as to how much you can pay into the account. I have an account where I get 5% at Barclays but that's only on amounts up to £5,000.

I get 6% on my Natwest regular digital Saver account.

The bulk of customers don't really shop around so there's little incentive for banks to have attractive products and little risk in having unattractive products.

Total deposits with UK banks are also still close to the record high so some argue most banks also don't particularly need customers depositing more at the moment so won't bother chasing the business.

I think you can only put in a max of £150 per month though, is that right?

yes, and only up to £5000, but the best one I could find at the moment and I was already with Natwest!

You’re right and there was an article about this in the I newspaper on Saturday. Saving rates have not gone up as much as borrowing rates, whilst banks make massive profits! So awful.

First direct are offering 7% but only for £300/ month.

Nationwide 4.75 for a 2 year bond.

www.reuters.com/world/uk/uk-watchdog-ensure-savers-benefit-interest-rate-rises-2023-04-20/