Savers throughout the UK may be rejoicing at the Bank of England (BoE) decision to boost interest rates by increasing the base rate from 0.50% to 0.75%. While a higher base rate may buck the trend of high-interest savings products only being available to those who shop around, at Raisin UK, our customers have had the convenience of attractive interest rates ever since the launch of our savings marketplace earlier this year.
The BoE base rate finally goes up
It’s only the second time that the BoE base rate has increased since the 5th of July 2007, with the former being on the 2nd of November 2017. Including the increase of 0.25% in November, this is only the second base rate increase in over ten years, meaning that savers have effectively been enduring decreasing interest rates for over a decade.
It’s arguable that savers may have become disenchanted with savings products following a prolonged period of low base rates that require them to shop around to find the best interest rates. Considering the discussion around a new basic savings rate (BSR), it looks like the Financial Conduct Authority (FCA) recognises that there may be apathy amongst savers.
Attractive and inflation-busting rates
While a higher base rate and concepts such as the BSR may help savers, the Raisin UK savings marketplace may provide an alternative solution to savings woes.
If the barrier for benefiting from higher interest rates is inertia, with longstanding customers being offered lower interest rates on savings products than those who are willing to shop around, our approach of providing customers who might not want to shop around with convenient access to a range of savings products might be the solution.
Customers at Raisin UK have been able to apply for savings products with rates well above the Bank of England’s base rate in a convenient marketplace since our launch. Since then, we’ve continued to expand our roster of fixed term deposits with attractive rates, with some fixed term deposits featuring rates which beat inflation.
One example of an inflation-busting rate on the Raisin UK savings marketplace is Gatehouse Bank’s 3 Year Fixed Term Deposit, which features a competitive rate of 2.33% AER.
Boost your savings with a cash bonus of up to £80
In addition to helping our customers to save time and make money with easy access to a range of savings products, we want to reward you for using our marketplace. We recently began offering a tiered bonus of up to £80 to those funding a savings product with amounts between £10,000 and £85,000.
How much you fund your account by will determine how substantial your bonus is. Terms and condition apply; find out more by visiting our bonus page.