Yahoo Finance Easy-access savings deals hit 4 per cent for first time since 2009
Easy-access savings rates have hit 4pc for the first time since 2009.
HSBC raised returns on its Online Bonus Saver instant access account by 0.5 percentage points on Thursday. The account now pays 4pc on balances of up to £10,000.
West Brom Building Society also increased the rate on its easy-access account to 4pc earlier this week.
The last time easy-access savings rates were this high was in February 2009, according to Moneyfacts, an analyst.
Banks have been bumping up savings rates following last month’s rise in the Bank Rate from 4.25pc to 4.5pc.
Savings rates are expected to rise further still, amid expectations that stubbornly high inflation will push central interest rates to 5.5pc by the end of the year.
Anna Bowes, of Savings Champion, another analyst, said boosts for savers were welcome, but warned: “There are quite a lot of market-leading savings accounts that have catches to them. You’ve got to keep an eye out for the terms and conditions.”
HSBC’s account only allows two withdrawals a year. Savers who want more access to their funds will end up with a savings rate of only 1.35pc. West Brom’s account also restricts withdrawals to two a year.
Savers who want an unrestricted easy-access account can still access rates of 3.85pc from Secure Trust Bank and 3.82pc from Chip.
Fixed-rate bonds have also shot up in the past few weeks. Lloyds Bank raised the rate on its one-year bond and Isa to 4.45pc on Friday, up 0.75 percentage points.
The highest rate available on one, two and three years bonds is now 5.31pc, from Smart Save.
Most of the biggest banks are still facing scrutiny over paltry rates on their accounts, however. The Treasury Select Committee began investigating retail banks in February over their failure to pass on rises in the Bank Rate.
On Thursday, the big four banks were offering rates of 0.7pc to 1.35pc even though the Bank Rate is at 4.5pc.
The committee published its correspondence from Nationwide, Santander, TSB and Virgin Money, who were asked to explain how they set their rates.
Harriett Baldwin, its chairman, said: “It’s clearer than ever that the nation’s biggest banks need to up their game and encourage saving.
“While other products are available to those who shop around, the measly easy-access rates on offer lead us to conclude that loyal customers are being squeezed to bolster bank profit margins.
“We remain concerned that the loyalty penalty is especially prominent for elderly and vulnerable customers who may still rely on high street bank branches.”
The Bank of England’s Monetary Policy Committee reported last month that the pass-through of interest rate rises to savers has been “unusually weak”.
The banks in question said the Bank Rate was not the only factor used to set returns on their savings accounts and outlined other costs they face.
