Tesco account passes on rate rise

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Tesco account passes on rate rise

Tue 10th Jul 2007

Many consumers are worried that their financial provider will not pass on the rate rises implemented by the Bank of England to them.

Research carried out by Tesco Savings indicates that almost a third of savers said their financial provider had passed on rates to them following the May base rate hike.

Just 33 per cent of respondents in a poll carried out by the group suggested they would receive the benefits of last week's rate rise by the bank, which took the base rate to 5.75 per cent.

Jeremy Sutton, head of Tesco savings, said that the group have passed on every rate rise on its instant access account to customers since 2000.

Mr Sutton added: "It's not surprising that savers are beginning to lose faith in some companies over the past few months. Recently, the numbers passing on the full base rate rise seems to be dwindling."

Those customers who open a Tesco instant access savings account before August 14th will receive an extra one per cent for six months from the time the account is opened.

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