Base rate rise should benefit savers now
Some of the big financial players are dragging their feet on upping rates for savers, says
Imust admit, there aren’t often times I find myself off work and pining to be covering a story. But in my final week of paternity leave( a healthy baby boy, thanks for asking), I was looking longingly at the news pages and wondering if I could furtively creak my laptop open and blast out some copy.
Yes, i missed the first increase to the Bank of England base rate for a decade – the entirety of my career as a personal finance journalist. Indeed, 80 per cent of my career has taken place during the era of recordlow interest rates.
I’ve seen crises come and go, scandals unfold and inflation leap and subside. But no, never been able to cover a rate rise.
Despite many false dawns over the years, the calls for a rate rise could no longer be ignored.
The Brexit effect has well and truly embedded itself in the economy, and with inflation racing upwards on a monthly basis, the Bank of England has decided that the era of ultralow rates is over.
Does that mean, then, that savers can finally jump for joy? This all comes down to your appetite for exploring the best deals and whether you’ve decided to house your nestegg with some of the lesserknown savings providers that have made the best efforts to offer competitive rates over the years.
Which? being Which?, we’ve combed the market to see what savings providers are up to.
Have you heard of RCI Bank, the banking arm of car manufacturer Renault? Didn’t think so. But it has been quick to pass on the rate rise, offering people 1.3 per cent on an instantaccess account.
(You should note that RCI isn’t covered by the UK’S Financial Services Compensation Scheme, the safety net that protects people should a bank go bust. Instead, it’s covered by