Savings boost as bank increases interest rates and announces new 2.3% interest rate

Previous increases to the base rate have been criticised by some experts as banks and building societies have not passed them on to their customers.

Rachel Springall, a personal finance expert at MoneyFacts.co.uk, said that savers may want to “rethink their loyalty” in light of the base rate hike.

She said: “The back-to-back Bank of England base rate rises are positive for the savings market, but it is the challenger banks and mutuals who are fuelling the top rate tables with competition.

“As it stands, many of the biggest high-street banks have passed on very little to their easy access customers, so savers may need to rethink their loyalty and look elsewhere for a better return on their hard-earned cash.