Treasury Committee expands campaign to encourage banks to boost savings rates

A powerful committee of MPs has widened the net in its campaign to encourage banks to boost the savings rates offered to loyal customers.

The Treasury Committee said it has written to Nationwide Building Society, Santander, TSB and Virgin Money about their easy access savings accounts.

The committee has been probing some low savings rates and wants to shed light on how banks and building societies determine the level of interest rate increases to pass on to savers and whether they inform their loyal customers that higher alternatives may be available.

Collectively, these banks and building societies, defined as “scale challengers”, account for around a quarter of all personal current accounts, the committee said.

The correspondence follows on from the committee shining a spotlight on the rates offered by the “big four” banks – Barclays UK, HSBC UK, Lloyds Banking Group and NatWest Group.

Commenting on the correspondence, Harriett Baldwin, chair of the Treasury Committee, said: “In a high interest rate environment, and with further Bank of England base rate rises possible, banks must do more to encourage saving.”

She added: “Consumers should continue to vote with their feet and find better offerings.”