After the long-awaited announcement last week that the Bank of England has finally raised the base rate by 0.25% to 0.75%, you were probably hoping to have been bombarded with news from your savings provider about the marvellous new rates they will be paying you.
Unfortunately, while we have seen immediate notifications from banks and building societies that they will be increasing the rates on variable rate mortgages, as expected it has been much quieter on the savings side of things. Perhaps it’s time to review your mortgage too? While we don't offer advice ourselves, we can point you in the direction of someone who can.
This is a normal state of affairs. We probably wouldn’t expect to receive the majority of notifications about savings rate increases until the beginning of next month – if at all.
Of course, we must remember that after the last base rate rise in November 2017, rates on only 50% of variable rate accounts increased - and as the average rate rise of those that did increase was just 0.20%, clearly many of those did not go up by the full amount.
In the easy access market for example, the average rate rose by just 0.09% - much less than the base rate rise.
However, there have been a handful of providers that have announced what they plan to do with some or all of their rates – we have put together a table below, which we’ll update for you in the newsletter over the next few weeks.
Remember, if you have friends or family who are not currently signed up to receive our Newsletter or Rate Alerts, it could be useful for them to do so. So, forward this to them so that they can stay up to date with what’s happening to their savings.
| Provider | Lowest Increase | Highest Increase | Effective Date(s) |
| Beverley Building Society | 0.25% | 0.25% | 28-Aug |
| Nationwide Building Society | 0.00% | 0.25%* | 01-Sep |
| Skipton Building Society | 0.00% | 0.30% | 31-Aug |
| Unity Trust Bank | 0.20% | 0.20% | 03-Aug |
| Cumberland Building Society | 0.15% | 0.25% | 01-Sep |
| TSB Bank | 0.00% | 0.25% | 01-Sep |
| Hanley Economic Building Society | 0.10% | 0.25% | 01-Sep |
| Coventry Building Society | 0.00% | 0.25% | 01-Sep |
| Cater Allen | 0.00% | 0.25% | 31-Aug |
| C.Hoare & Co | 0.00% | 0.25% | 06-Aug |
| Co-op Bank | 0.00% | 0.19% | 30-Aug |
| Santander | 0.00% | 0.25% | 03-Sep |
*Help to buy ISA will increase by 0.50% to 2.50%
Of course, it’s not just about how much your current provider does or doesn’t increase the rate on the account you hold. It’s vital to look at the rate you are earning after any increase is taken into account.
If you are holding an uncompetitive account, then don’t wait for the base rate rise to filter through before you make the switch in order to increase the pounds in your pocket.
And with over 61% of all variable rates currently paying 1% or less (which is what we would consider to be uncompetitive), it’s more than likely that you may have money which could be working harder. Even if your provider passes on the full 0.25% rise – which is by no means guaranteed - better rates can already be found elsewhere, so make the switch.
Below is a quick summary of the best rates currently available for you; You can also get our weekly best buy tables sent directly to your inbox.
Top notice account – Secure Trust Bank (120 days’ notice), 1.79% AER
Top one year fixed rate bond – Family Building Society, 2.11% AER*
Top two year fixed rate bond – Secure Trust Bank, 2.26% AER*
Top three year fixed rate bond – Secure Trust Bank, 2.37% AER
Top five year fixed rate bond – Secure Trust Bank, 2.69% AER
Top variable rate cash ISA – Charter Savings Bank (95 days’ notice), 1.40% AER
Top one year fixed rate cash ISA – Paragon, 1.50% AER
Top two year fixed rate cash ISA – Paragon, 1.70% AER
Top three year fixed rate cash ISA – Shawbrook Bank, 1.85% AER
Top five year fixed rate cash ISA – Shawbrook Bank, 2.30% AER
If you need help checking the rate you are earning on your savings, either use our Rate Tracker or call us on 0800 011 9705 to see just how much more interest you could be earning.
You might also like...
@savingschampion
Find us on Facebook