Financial Services > e-banking > Banking news
Online banking company boosts savings rates by 0.25 per cent

Mon, 14 May 2007

Online banking customers may be interested to learn that one financial services provider has announced it will pass on the full base rate rise.

Last week, interest rates were raised 0.25 per cent to 5.5 per cent by the Bank of England's monetary policy committee.

To put this into context, it is the base rate's highest level for more than six years.

Now, virtual banking accountholders at financial services provider Sainsbury's Bank have been informed that they will see their savings rates rise by 0.25 per cent to 5.75 per cent from May 17th 2007.

Sainsbury's Bank's head of savings commented: "This latest rate increase to our internet saver account underlines the competitiveness of this account and our fantastic track record of offering consistent rates to savers in this competitive internet-only savings market."

The Bank has had sole responsibility for setting interest rates since 1997.

Shortly after the Labour party came to power, incoming chancellor Gordon Brown announced that he was devolving rate responsibility.

This policy has been maintained for the last ten years, with savers generally experiencing lower interest rates than during the early 1990s.
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