Banks fail to pass on interest rate rise to savers

Rate disparity... Andrew Bailey

- Sarah O’Grady

BANKS and building societies came under mounting pressure yesterday to pass on the interest rate hike to their suffering savers.

Lenders moved immediately to hit variable or tracker mortgage holders with higher charges, but are dragging their feet to reward savers, say critics.

Only two have announced better savings account returns...but they will not be launched for weeks.

Tory leadership candidate Liz Truss backed savers last night.

Her campaign said: “The Bank of England has taken a decision to raise interest rates to 1.75 per cent to try to help tackle inflation.

“Banks should be passing on any increases in interest so hard-working people with savings can have more money in their pockets.

Her team added: “Liz will be watching banks’ actions carefully.”

Derisory