Coventry Building Society to raise savings rates after Bank of England’s base rate hike
Martin Lewis advises on savings accounts and premium bonds
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Banks and building societies have received criticism in recent months for not passing on the financial institution’s rate increase to its customers via savings products. However, recent moves from Santander, Nationwide and Coventry Building Society suggest this is changing. Savers are desperately looking for the best interest rates to mitigate the ongoing damage being done by the soaring inflation rate.
The recent rate rise from Coventry is set to be implemented from July 1, 2022, with the building society publishing the full list of the changes on its website next week.
Furthermore, borrowers on the building society’s Standard Variable Rate (SVR) will not see any changes to their mortgage interest rate.
Matthew Carter, the head of Savings and Mortgages at the building society, shared what Coventry hopes to achieve with this latest interest rate rise.
Mr Carter said: “We’re proud of our track record of offering long-term value to our members, consistently paying the best rates we can afford to our savers while protecting our SVR borrowers from the increase.”
READ MORE: ‘I didn’t eat for a week!’ Mum of three devastated after losing £4,000 in bank scam
Yesterday, the Bank of England’s Monetary Policy Committee (MPC) outlined its plan to raise interest rates to address inflation, which is currently at nine percent.
Following the financial institution’s intervention, the UK’s base rate has risen from one percent to 1.25 percent.
In yesterday’s meeting, the group voted by a majority of 6-3 to raise the base rate by 0.25 percentage points.
Committee members in the minority said they preferred to hike interest rates by 0.5 percentage points to 1.5 percent.
A third of the Bank of England’s MPC were in favour of taking further action against inflation to benefit savers.
Outside of Coventry Building Society, Santander UK confirmed changes to its in-credit interest rate on 1I2I3, Select and Private current accounts.
All savings accounts linked to the base rate will see their rates rise by 0.25 percent.
Santander’s 1I2I3, Select and Private current accounts will experience a rate hike from 0.50 percent to 0.75 percent next week.
Hetal Parmar, the head of Banking and Savings at Santander UK, explained: “We’re pleased to be able to increase the interest rate on our popular 1I2I3 Current Account.
“Customers can continue to earn cashback on regular household bills plus cashback on card spending at a range of retailers through our Retailer Offers programme, and now, increased interest on their balance.”
Furthermore, Nationwide Building Society has announced plans to increase rates by up to 0.50 percent on all off-sale variable rate accounts.
The building society also launched a new issue of its Start to Save account which offers a 2.50 percent rate.
Debbie Crosbie, the chief executive of the building society, outlined why it is important for Nationwide to hike rates at this moment in time.
Ms Crosbie said: “As a mutual, it’s always our goal to support savers and offer the best rates we can sustainably afford.
“We’ve worked hard to give existing savers even more reason to put money away at this time, and now we’re launching Member Online Bond and increasing rates on all off-sale accounts to help further.
“However, we recognise that there are also people who have not been saving. Our Start to Save account encourages a regular savings habit amongst people who are able to put a small amount away each month.”
Source: Read Full Article