Banks slammed for ‘doing as little as they can get away with’ to help savers
The UK’s biggest banks are not doing enough to support savers as interest rates look set to remain higher for longer, a top Conservative MP has said.
Several banks have seen sharp falls in their share prices after reporting weaker-than-expected results over the past week, with analysts pointing out that the tailwind from high interest rates is coming to an end and lenders are being forced to offer better deals in a fiercely competitive market.
But Treasury Committee chair Harriett Baldwin said banks have been “far too slow to reward savers through better rates on instant access savings accounts”.
“The figures published in the past week still show signs that the banks are trying to do as little as they can get away with to reward our constituents for saving,” she said.
The committee summoned bosses from the four largest banks – Barclays, Lloyds, HSBC and Natwest – to answer questions back in February over concerns that lenders were profiteering from not passing on rising interest rates to savers.
“They should have listened to our suggestion as there are signs that savvy consumers are switching for better rates elsewhere,” Baldwin said.
“We will continue to press for individual and business savers to be rewarded,” she added.
The Financial Conduct Authority urged banks to “accelerate” savings rates in July after chief executives admitted to the regulator that they needed to do more to support consumers.
Economists believe the Bank of England will leave interest rates at 5.25 per cent for the second time in a row when it meets on Thursday in an effort to curb inflation without plunging the economy into a recession.