Banks being slow to pass on savings rates, says Chancellor Jeremy Hunt
Banks are "taking too long" to pass on increases in interest rates to savers, the chancellor has claimed.
"It is taking too long for the increases in interest rates to be passed on to savers," he said, adding things were particularly slow to those with instant access accounts. "The rates are more frequently being passed on to people who have fixed term, fixed notice accounts," Mr Hunt said. On Monday, the average two-year mortgage deal hit 6.23% and the savings rate was 2.36%, a gap of 3.87%.
UK Finance, the trade body for the banking sector, has said saving and mortgage rates "aren't directly linked and therefore move at different times and by different amounts".
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