Percentage of savings accounts paying above base rate falls to five-year low

The proportion of savings accounts on the market paying above the Bank of England base rate has sunk to a five-year low, analysis has found.

Just over two-thirds (69%) of savings accounts pay a rate above 0.75%, Moneyfacts.co.uk found.

It said the proportion of savings accounts paying above the base rate is at its lowest level since January 2013.

The base rate was increased from 0.5% to 0.75% in August – but consumer group Which? has previously accused providers of “double standards” when passing on the rate rise to savers and borrowers.

Which? found earlier this month that around two-thirds of instant access variable savings accounts have failed to see any benefit so far from last month’s interest rate rise.

Meanwhile, almost half (48%) of providers had raised their standard variable mortgage rates by the full 0.25%, Which? found previously.

Trade association UK Finance previously said banks have made it easier for people to find the best deal for them and that people will be affected differently by the base rate rise depending on what type of product they have.

Charlotte Nelson, a finance expert at Moneyfacts, said: “With the percentage of savings accounts that pay above base rate currently at a five-year low, now is not the time for savers to rest on their laurels.

“In order to achieve a decent return, they must work hard and actively shop around to maximise their interest.”