Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Convenience is costing savers who keep their cash stashed in an easy access account with a big high street bank. As the Bank of England base rate has risen all the way up to 4%, it is evident loyal savers have not seen the full benefits passed on to them. The Treasury Committee is seeking answers from various banking giants, including Barclays Bank, HSBC, Lloyds Banking Group and NatWest Group as to why specific easy access accounts pay much less than base rate. It will be interesting to see the responses, which are anticipated this week, particularly when challenger banks and building societies are increasing rates.

“Savers who compare the top easy access rates will find they currently pay 3% or more, and every brand has the same protections in place as the big bank brands do, being covered by the Financial Services Compensation Scheme (FSCS). However, every institution can have its own reasons and margins in place that leads it to assess its savings rates. Challenger banks and building societies may well prioritise offering a fair deal compared to the wider market and adjust their rates to cope with demand or other market influences. Mutuals may be worth considering, not just for their savings rates, but also for their principles and the support of local communities and charities. It will be down to savers to compare the rates on offer and move their money, so it is wise to review any accounts often and not presume they will see their rate rise in line with base rate.”

*Banks selected for comparison are considered the biggest on the high street. This comparison looked at Barclays Bank, Bank of Scotland, HSBC, Halifax, Lloyds Bank, NatWest, Royal Bank of Scotland, Santander and TSB. Please note, NatWest and Royal Bank of Scotland are due to increase the Flexible Saver rates from 0.65% to 1.00% from 21 March 2023.