65 percent of savings accounts offer less than the base rate

According to research results recently published by Defaqto, more than 6 out of every 10 providers of personal and business bank accounts in the UK offer savings products to their customers that are actually less than the 0.5 per cent base rate set by the Bank of England.

With inflation rocketing ever higher, incensed savers say banking provider’s attempts to pass along interest rates as minuscule as 0.05 per cent is akin to being kicked in the teeth.  A massive 65 per cent of the savings accounts currently on the market fail to meet the 0.5 per cent base rate, according to the Defaqto research findings.

Despite having better rates on offer, eight UK banks even boast deals to new customers with 0.05 per cent rates of return.  Even worse, this paltry sum is before tax is deducted, leaving basic rate taxpayers earning only 0.04 per cent, while just 0.03 per cent awaits those paying the higher tax rate.

Any saver with a head on his or her shoulders has obviously avoided such deals as if they were the Plague.  However, the true issue is that out of the 454 easy access accounts currently on offer in the UK, only 160 of them pay out more than 0.5 per cent before taxes, experts say – and even then a customer with the average no notice account can expect to earn just 0.9 per cent before tax.

Banking providers in the UK found to be offering the offensively low 0.05 per cent savings rates included Shepshed Building Society, Saffron Building Society, Intelligent Finance, First Trust Bank, Darlington Building Suciety, and Allied Irish Bank, to name but a few.

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