It's now been one week since the Bank of England decided to increase the base rate of interest. Many savers were hoping it meant their savings rates would increase too, so we've had a look to see what providers have done so far.
Of the more than 100 providers currently operating in the savings market, only 10 have made announcements, and these may not be exactly what savers want to hear. While some, like Beverley BS, have indeed passed on the full 0.25% increase (but only from 28 August onwards), others have been a bit more selective.
For instance, TSB has passed on the full 0.25% rise on its junior ISA and children's account, but has thus far only upped the rate on its other variable savings deals by 0.10% (from 1 September). Nationwide BS is another provider that has increased a lot of its rates by 0.10%, but did increase its Help to Buy ISA offering by an impressive 0.50% (from 31 August).
As you can see, it's impossible to predict if you will see a rate rise, let alone the percentage – as was the case after the previous base rate rise as well. "It will be disappointing news for many savers to know that they may not benefit from the full 0.25% base rate rise," commented Moneyfacts.co.uk finance expert Rachel Springall. "It is a real shame, and just demonstrates why savers should think about switching and not hold their breath for a rate rise on their account."
So, aside from checking the website of your current savings account provider to see if they've announced any updates yet, you may want to keep an eye on the savings charts too, to see if there are any rates with other providers that can beat the odds (or at least your current rate). This may be especially worthwhile for those looking at fixed rate bonds, as providers seem to be focusing on increasing the rates on their variable rate accounts, as well as their junior ISAs and children's savings accounts.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.