MILLIONS of bank customers are still in the dark about whether they’ll get a much-needed savings boost following the rise in interest rates.
It’s now more than a week since the Bank of England rose base rate for the first time in a decade.
And while some banks have announced they will pass on the small 0.25 per cent increase to its savers after The Sun launched its Save our Savers campaign, many others still haven’t confirmed if they’ll pass the boost on or not.
According to analysis by money website Savingschampion.co.uk, only a dismal 19 out of 150 providers have increased their rates since the Bank of England’s decision.
Barclays, Natwest and HSBC are some of the major banks that are still deciding to raise their savings rates or not, it found.
Money expert at the website, Tom Adams, said it was really disappointing many big-name providers hadn’t already passed on the rate increase.
He told the Sun Online: “While some providers would argue that they haven’t had time to properly review their savings rates yet, this excuse is unlikely to wash with savers for long.
“Some providers have shown it can be done – Coventry Building Society published full details of the changes it will make within minutes of the announcement.
“It is disappointing that many providers haven’t confirmed full details of the changes they will make yet.”
Lloyds and Halifax are among the providers that have confirmed they will pass on at least some of the rate rise onto its saving customers, while premium bonds provider NS&I has passed on the full increase and slashed the odds of winning.
What are the best paying accounts for my savings?
While some banks haven’t yet passed the small boost in interests rates on, it’ll still be worth looking for a top-rate to make the most of your money – though you probably won’t find it on the high street.
Smaller banks you may not have heard of are typically paying the best rate for your savings.
Yesterday, Paragon Bank went to the top of the best buy table for easy access accounts with a rate of 1.31 per cent.
You’ll only need a £1 to open the online only account and will be available from November 10.
If you were to put £2,500 in the account, you’d earn £33 over a year.
Just behind Paragon is BM Savings Internet Saver Account.
This pays a rate of 1.30 per cent for the first year but will drop to just 0.05 per cent afterwards.
And if you can afford to tie your money up, then fixed-rate deals will offer more attractive rates.
Smartphone bank Atom has three-year fixed deal can be opened with just £50 and comes with a rate of 2.25 per cent.
On £2,500 you’ll earn £174 over the course of the deal.
Atom also tops the best buy tables with its two-year saver (2.05 per cent) and its one-year deal too (1.95%).
If you have a lot of money to put away, Swedish Bank Ikano offers a 2.46 per cent deal but you must open it with a minimum deposit of £1,000 and be happy to tie it up for five years.
You can now put up to £20,000 into a cash Isa – a savings account you’ll never pay tax on.
The Post Office has the current best buy with a rate of 1.07 per cent – that’s worth £26 a year in interest on a balance of £2,500 – followed by Sainsbury’s Banks Cash Isa (1.06 per cent).
Virgin Money has the best one-year fixed Isa deal and a rate of 1.35 per cent.
If you’re a savvy saver, you can take advantage by saving some money in a current account instead.
With a Nationwide account you’ll earn a decent 5 per cent up to £2,500 for the first year you have the account.
After the first year, the rate drops to a much more typical 1 per cent, so be aware.
Tesco Bank’s Current Account has a rate of 3 per cent on £3,000.
TSB’s Classic Plus also pays 3 per cent but only on balances up to £1,500.
Will my money be protected by smaller banks?
If you want to take advantage of smaller banks’ deals then make sure they are protected by the Financial Services Compensation Scheme (FSCS).
This protects up to £85,000 of deposits – provided the bank you are with is authorised by the Financial Conduct Authority (FCA).
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