Analysis conducted by UK consumer group Which? shows that 9 out of 10 UK banks did not fully pass on last year`s interest rate rise from the Bank of England to consumers. The numbers presented by Which? were outlined in a recent article published by The Times, showing annual losses of £600 million to British savers, constituting almost £15 for every person with a savings account!
Following a decade of bottom-dwelling interest rates, set to mitigate the effects of the 2008 financial crisis, UK banks are not following-up on interest rate increases for savings accounts, though more than half increased their standard variable rate for mortgages. Accusations of double-standards at the banks in question are rife. Which? highlights the application of interest hikes of over 0.2 pp by Barclays, Halifax and TSB to at least one mortgage deal, whilst only applying a maximum increase of just 0.15 pp on savings accounts.
With an additional interest rate increase from the Bank of England expected next month, bringing the official rate to 0.75%, experts advice down-payments of loans over saving, should this trend of deception by banks continue.