Three in Four Savers Haven’t Seen an Increase in Their Interest Rate Since August’s BoE Base Rate Rise
- Only 44 percent of savers are aware of whether their interest rate has changed
- One in six savers believe their interest rate has decreased since August
- Young people aged 18-38 are the least aware of interest rate changes, with only 23 percent having seen a rise
New research from personal finance comparison site, finder.com, has revealed that three quarters of savers (74 percent) have not felt the benefits of the Bank of England’s August interest rate rise.
The Bank of England increased the interest rate by 25 basis points from 0.5% to 0.75% in August 2018. While this has seen almost all lenders push up the interest rate that consumers pay on mortgages, a lot of people with savings accounts haven’t seen an increase to the amount of interest they earn from their savings.
Awareness of these changes appears to be low, as only 44 percent of savers are sure about whether the interest on their savings accounts has changed or remained the same. Of the one in four savers (26 percent) who believe their interest rate has increased, only around half of them (12 percent) know how much it has risen by. Surprisingly, 16 percent believe that the interest rate on their savings has actually gone down since August..
This comes ahead of the latest interest rate announcement by the Bank of England’s Monetary Policy Committee (MPC) on Thursday. Finder’s panel of economic experts unanimously predict the 0.75% base rate to be maintained, with Brexit uncertainty cited as the main issue preventing another rise. However, a positive development is that 40 percent of the panelists predict UK wage growth to be buoyant over the next six months.
Young Brits aged 18-38 are the least in touch with how August’s increase has affected their savings, with fewer than a third (31 percent) being aware of what the interest rate rise has meant to them. Those over the age of 74 are the savviest, with three in five (61 percent) understanding the impact of the interest rate rise.
The North East is the region most in the dark about the effects of the interest rate rise on their savings account – two thirds (67 percent) are unaware of how their savings have been affected. Half of those in Yorkshire and the Humber (51 percent) understand the implications of the rise, making this the most informed region. Worryingly, two in five of these residents (42 percent) reported that their interest rate has remained the same.
To see the full breakdown of interest rate changes and consumer awareness, including age and regional breakdowns, visit: https://www.finder.com/uk/consumer-impact-after-the-bank-of-england-base-rate-rise
Commenting on the research, Jon Ostler, CEO at finder.com said: “The last few years have been difficult for savers, with major high street banks providing very low rates of interest to customers. The increase to the base rate in August was warmly welcomed by consumers; however, these findings show that most savers have not yet been rewarded with better interest rates.
“Whilst it’s clear that not all banks have passed on the interest rate increase, or kept customers in the loop about any changes, there are some that have. We would always recommend savers shop around for the best rate, to ensure you get a better return on your savings.”
finder.com is a personal finance website, which helps consumers compare products online so they can make better informed decisions. Consumers can visit the website to compare utilities, mortgages, credit cards, insurance products, shopping voucher codes, and so much more before choosing the option that best suits their needs.
Best of all, finder.com is completely free to use. We’re not a bank or insurer, nor are we owned by one, and we are not a product issuer or a credit provider. We’re not affiliated with any one institution or outlet, so it’s genuine advice from a team of experts who care about helping you find better.
finder.com launched in the UK in February 2017 and is privately owned and self-funded by two Australian entrepreneurs – Fred Schebesta and Frank Restuccia – who successfully grew finder.com.au to be Australia’s most visited personal finance website (Source: Experian Hitwise).
Follow us on Twitter for the latest updates or drop us a line to say hi: @findercomuk
- finder.com commissioned Onepoll to carry out a nationally representative survey of adults aged 18+
- A total of 2,000 people were questioned throughout Great Britain, with representative quotas for gender, age and region.
- Jon Ostler, CEO (UK) at finder.com is available for comment, opinion or interview regarding the research.
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