Savings update: big banks still not passing on base rate change

Published by Sylvia Morris on 05 September 2018.
Last updated on 05 September 2018

Tug of war

One month on from the Bank of England base rate hike from 0.5% to 0.75%, many of the nine biggest high street banks have failed to pass on the 0.25-point rise, research from data analysts Moneyfacts reveals.

The average easy-access rate has risen by just 0.06 percentage points, it says. The rates on the big banks’ easy-access accounts get nowhere near to matching base rate and some including Lloyds Bank Easy Saver, NatWest Instant Saver and RBS Instant Saver pay as little as 0.2%.

The top rate on easy-access accounts with no withdrawals and restrictions remains at 1.3% from both RCI Bank and Shawbrook Bank.

Coventry Building Society still pays 1.4% on its Limited Access Saver, which includes a 0.25 percentage point bonus and limits you to making three free withdrawals every 12 months.

On fixed-rate bonds, the top rate for one year is 2.03% from Oaknorth, followed by Paragon and ICICI Bank at 2.02% and Atom Bank at 2%.  

For 18 months Charter Savings Bank pays 2.11%, while for two years top rates include Secure Trust Bank’s 2.26% and Tandem’s 2.25%.

On easy-access Cash Isas the best rate comes from Virgin Money’s Double Take E-Isa at 1.35%, but you are limited to making two withdrawals a year.

The top rate with no withdrawal restrictions is Shawbrook Bank Easy Access Cash Isa 4 at 1.3%.

On fixed-rate Cash Isas, Bank of Cyprus pays 1.54% for a year, with Paragon and Ford Money both at 1.5%. You can earn 1.5% with Coventry Building Society if you tie your money up until the end of November next year rather than for just 12 months.

Monmouthshire Building Society pays 1.61% for 18 months, while for two years you can earn a marginally higher 1.71% with Charter Savings Bank or 1.7% from Shawbrook Bank.

Ford Money Fixed Saver 1 year

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I bank with First Direct. On

I bank with First Direct. On 2nd Sept. (a month after the B. of E. increase) they increased the rate they pay on my Cash ISA from 0.75 to 0.85, which is only 40% of the B. of E. increase. They are presumably keeping the balance which they're getting on their own cash investments.

And how well have National

And how well have National Savings and investments done? After all they are Government owned and run.