Poll Explores Attitude To Rising Interest Rates
OnePoll conducted a research project to uncover public attitude to how banks handle increasing interest rates.
Nearly one in five adults have complained to their bank for being slow to pass on interest rate rises on savings and investment accounts.
Our study of 2,000 adults found 78 per cent feel banks are quick to increase rates on their mortgage products as soon as the Bank of England’s base rate rises – but don’t do the same for savings and investments.
As a result, 18 per cent have complained to their bank after seeing the mortgage rates go up but savings stick at the same lower rate.
Of those, 47 per cent said raising their concerns to the bank made no difference, while 23 per cent claimed they got worse.
Just 30 per cent saw rates rise.
But this has led to 30 per cent of those who complained moving banks due to the lack of response, while another 56 per cent would consider switching.
A spokesperson for market research firm OnePoll.com, which commissioned the research, said: “While it has been great for those with a mortgage, for years, savers have missed out on any real interest as the rates have been at rock bottom.
“But as the bank of England has increased the interest rates over the last year or so, mortgages have risen almost immediately afterwards, while many have seen their savings remain the same – or only increase much later.
“This is leaving savers frustrated, and it seems they are happy to talk with their feet and walk away from banks they feel are not passing on the interest rate rises fairly.”
The study also found 80 per cent feel the government should step in to ensure banks pass on the interest rate rises across all of their products at the same time.
And 73 per cent believe the government should set a minimum interest rate for all UK savings accounts based on the Bank of England base rate.
But 35 per cent feel the new online challenger banks, which often have higher interest rates on savings and investments accounts, are forcing traditional banks to increase the interest they offer on accounts.
While 34 per cent also think they are forcing traditional banks to improve their customer service.
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