The average instant access deposit rate available from banks and building societies rose just 0.05 per cent to 0.27 per cent in September, despite August’s 0.25 per cent interest rate rise.
British Pearl investment manager James Newbery said it was another example of the banks “looking after themselves with little concern for hard-hit savers who have been labouring under negligible interest rates for far too long”.
“There may be business decisions why the whole of August’s interest rate rise can’t be passed on, but for just a fifth of it to find its way to depositors is nothing short of insulting. It’s just more evidence that those seeking returns that can shelter their capital from inflation need to do a lot more than just walk down the high street or select traditional accounts that haven’t served their customers well for over a decade,” he added.
“Savvy savers must continue to look for avenues they may not have considered before or risk seeing their nest eggs slowly evaporate before their eyes.”
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