Banks betrayed us all

THE big banks really are a miserly bunch aren’t they?

First, they slash easy access savings rates as low as 0.01 pc in a series of drastic cuts.

Then, they refuse to pass on the Bank of England’s base rate rise.

This two- pronged ruse is designed to boost bank profits at the expense of diligent folk who work hard and don’t spend money irresponsibly.

In explaining the cuts to us, the banks blamed a cut in the record low Bank of England base rate from 0.5 pc to 0.25 pc in August 2016. But, as we expose today, they acted before — and after — that date.

In other words, they knew the day would come when the Bank of England would start raising rates and were preparing assiduously for it.

The second part of a cynical plan is now under way. Without exception, big banks are dragging their feet passing on last week’s 0.25 percentage point base rate hike.

They know if they hold on long enough, everyone will get distracted by Donald Trump’s war-mongering or the next sex scandal in Westminster, and they’ll get away with doing nothing.

It’s horribly mean-spirited, not least because a 0.25 percentage point rise makes only a tiny difference to an individual customer, yet clinging on to it gives banks a £4 million a day windfall.

Rise or no rise, pensioners relying on savings income from the big five banks will still be well short of inflation at 3 pc, meaning their money is falling in value.

Privately, banks say they’re sitting on so much cash that they don’t feel the need to offer competitive rates. To my mind, it should be illegal to pay less than base rate under any circumstance. But banks get away with it because official figures show almost seven in ten of us don’t bother shopping around.

If you do one thing this week, take half an hour to switch your savings and credit cards. As well making yourself better off, it’ll send an important message to the big banks: treat us like cash cows and we leave. will

Victims’ victory

ON A more positive note, well done Lloyds for changing its tune on compensating fraud victims. After initial hesitation last week, Britain’s biggest bank now says it fully supports Money Mail’s bid to use the £130 million in frozen criminal funds to pay back victims of bank transfer scams.

It’s good to learn that banks are working on plans to track down stolen money and return it to clients. But as we now know victims were left up to £76 million out of pocket in just six months this year, it should be clear that launching a compensation fund is vital.

Budget winner?

HERE’S a nifty idea for Philip Hammond’s Budget on November 22. Why not let savers cash in part of their final salary pensions? Currently, cashing in one of these plans is an all-or-nothing decision and 220,000 people have taken the ‘all’ option in just two years, withdrawing an estimated £50 billion.

You can understand why it’s popular: you get oodles of cash all at once, rather than having to wait for it monthly over your retirement. But for some it’s a disastrous idea. You are giving up a goldplated, inflation-linked income guaranteed for life, in return for a lump sum that may run out if your investments turn sour.

Allowing savers to cash in a chunk of final salary pensions would be much safer. You could leave enough guaranteed income to enjoy old age and release the excess to spend worry-free.

Delivering profit

HAVE you worked out how much it’ll cost to send Christmas cards this year? A first-class stamp now costs 65p and second class 56p — both up 1p on last year’s prices.

In 2006, first class cost 32p and second class 23p. Over a decade, the cost of posting Christmas cards has more than doubled.

The number of letters each year has declined 40 pc in that time. Royal Mail is now privately run, so those figures matter. But spare a thought for pensioners who still send Christmas cards. A price freeze would be a welcome gift.