Savings providers are failing to pass on the Bank of England’s 0.25% interest rate hike, analysis from Moneyfacts Group has revealed.
Earlier this month, the Bank of England raised interest rates to 4% – the first increase in more than three years – driven by renewed inflationary pressures.
However, seven in 10 savings providers have failed to pass on the 0.25% rise across all variable-rate accounts in their range, says Moneyfacts Compare. This is based on 20 of the 28 savings providers that have so far increased rates on on-sale variable-rate accounts, applying at least one increase of less than the full quarter-point rise.
The Moneyfacts Average New Savings Rate is up to 3.84%, an increase of 0.03% since 5 November 2026. The last time the rate was above 4% was in January 2024.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Savers have so far been left short-changed following last week’s increase to the Base Rate, with seven in 10 savings providers increasing rates on at least one variable account by less than the full 0.25% rise. There are still over 100 savings providers yet to decide on making a rate increase to their on-sale variable rate deals, but savers should not wait around for news.
“Instead, the top rate deals remain on offer from challenger banks and building societies so now is an ideal time to switch and ditch an old account to escape the ‘loyalty tax’ from their bank.”
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