Savers hoping for a Base Rate rate rise this month won’t be appeased by the small shift in best buy rates thanks to Bank of Cyprus.
While rates have pushed up marginally in recent months thanks to competition between smaller banks, the number of deals paying more than the base rate has actually fallen according to Moneyfacts.co.uk data.
Charlotte Nelson, finance expert at Moneyfacts, said: ‘Now, 72 per cent of all savings accounts pay above base rate, 5 per cent less than in November 2017. Even more significantly, this is 4 per cent lower than a month after the last rate cut in August 2016.
‘This indicates that, while base rate has returned to 0.50 per cent, the savings market has yet to recover from the rate cut almost two years ago. This is also reflected in the average easy access rate, which is yet to return to its pre-cut levels; it stands at 0.49 per cent this month, compared with 0.54 per cent in August 2016.
‘Not only will savers have had their hopes dashed as a base rate rise this month was not meant to be, but the news that the last rise failed to result in better rates for most will be an added thorn in their side.
‘Savers will now have to take matters into their own hands and revaluate their accounts to make sure they are not on a rate that pays less than the base rate. If they are, voting with their feet is their only option.’