A leading bank has put up its rates on specific savings accounts by as much as 23 per cent in a major boost to Britons during the cost-of-living crisis.
Barclays’ one-year fixed-rate bond will soar from 4.3 per cent to 5.3 per cent.
The increase will see a change of 23 per cent.
The banks’ one-year flexible cash ISA will witness an increase from 4.3 per cent to 5.3 per cent.
Barclays Bank in Sheffield, South Yorkhire
PA
The two-year offer will rise to 5.35 per cent.
The decision comes after high-street banks were slammed for not passing on Bank Rate increases to customers.
Customers who qualify for the £75,000 to £100,000 “premier” service will see rates hit 5.5 per cent on a two-year flexible bond or cash ISA.
The one-year alternative will see the rate hit 5.45 per cent.
People observe social distancing as they queue outside a branch of Barclays bank in Wolverhampton city centre
PA
Barclays’ rates changes will come into force from Tuesday.
Rates rises for the bank’s easy-access accounts look set to be published later this month.
Financial analysts at Moneyfacts revealed other providers have also increased rates.
Moneyfacts Rachel Springall said: “It’s good to see some positive rate increases from such a prominent brand, but as both the fixed bond and ISA market remain competitive, better rates can be found elsewhere.
Money in pictures
PA
“It is imperative that savers check the top rate tables to ensure they are getting the best possible return on their hard-earned cash.”
Chancellor of the Exchequer Jeremy Hunt and the Financial Conduct Authority watchdog have blasted banks for failing to pass on increases from the Bank of England to customers.
The FCA even announced banks would be named and shamed for short-changing customers.
The watchdog found less than 30 per cent of interest rate rises have been passed on to savers.
Chancellor of the Exchequer Jeremy Hunt
GB News
The Bank of England announced its 14th consecutive rate rise in early August as Threadneedle Street hiked the base figure to 5.25 per cent in a bid to curb inflation.
Barclays was also criticised last week for changing overdraft limits regardless of how much money they have or how much they earn.
The bank said it would review its customer letters, and how it carries out underlying affordability overdraft checks for customers with large deposits.
