Major high street banks have been criticised by the chair of the Treasury Committee for doing little to reward savers.
After Barclays, Lloyds, NatWest and HSBC published their latest financial results, the head of the group of MPs, Harriet Baldwin, said: “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.”
“The big four banks have been far too slow to reward savers through better rates on instant access savings accounts,” Ms Baldwin said.
High interest rates have helped the major lenders increase profits, the results released by big banks showed.
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Rates have been hiked to 5.25% by the UK central bank, the Bank of England, in an attempt to bring inflation down to its 2% target.
Borrowing has become more expensive as a result – with mortgage bills rising.
But largely, savers have not benefitted from higher interest rates.
Pressure to increase savings rates has been applied by the Treasury Committee and the finance regulator, the Financial Conduct Authority (FCA), since interest rates have gone up.
Throughout 2023 banks have been said, by MPs on the committee, to be increasing mortgage rates while being slower to up savings rates in an effort to boost profit.
“We will continue to press for individual and business savers to be rewarded. Meanwhile, savers should shop around for the best rate,” Ms Baldwin said.
“They [the banks] should have listened to our suggestion as there are signs that savvy consumers are switching for better rates elsewhere,” she added.
The Bank of England makes its next interest rate decision on Thursday and is poised to hold rates.
