Abbey International has pushed up its base rate following the 0.25% increase set by The Bank of England earlier in July, passing it on to its Gold account and Instant Access Savings customers.
While this may be bad news for borrowers, the rate – the highest level for six years at 5.75 per cent – is set to benefit savings customers. Jane Matthews, Head of Marketing and Business Development at Abbey International comments: “The UK Base Rate is now at its highest point since 2001 and our range of savings products reflects this.
“Our Gold and Base Rate Tracker range of accounts are used by a wide range of customers around the world, both as their main offshore banking facility and to supplement local transactional accounts.
“Our internet banking service allows accounts such as Gold and Base Rate Tracker products to be operated 24 hours a day via the web, both of these products offer an attractive mix of convenience and competitive interest rates.
“The interest rates for the Gold account are tiered, so the greater the balance the higher your gross interest rate will be.”
However, mortgage holders coming off a short-term fixed rate deal of two or three years will feel the pinch worst of all, with rates having stood at just 4-4.5 per cent when their fixed rate period commenced.
Learn more about Abbey Savings accounts