Following the decision by the Bank of England on 3 February to increase the Base Rate from 0.25% to 0.50%, Recognise Bank passed on the full 0.25 percentage point increase to all its existing personal savings customers with variable rate accounts.
Recognise also passed on the full 0.15 percentage point increase to its variable rate savers in December 2021 when the Bank of England raised the Base Rate for the first time in over three years.
The new rates are:
- The 95 Day Notice Account, Issue 1, will rise from 1.25% AER to 1.50% AER
- The 95 Day Notice Account, Issue 2, will rise from 1.10% AER to 1.35% AER
- The 95 Day Notice Account, Issue 3, will rise from 0.85% AER to 1.10% AER
- The 35 Day Notice Account, Issue 1, will rise from 0.75% AER to 1.00% AER
The new challenger bank only entered the personal savings market in September, promising to offer savers competitive rates and fairness, especially as so many of the mainstream banks are offering low rates, with hardly any of them passing on the Base Rate rise in December.
Damian Trussler, Head of Savings at Recognise Bank, said: “After several years of paying extremely low interest rates on their accounts, it doesn’t seem fair that providers aren’t passing on the Base Rate rise to hard pressed savers.
“We are likely to see more Base Rate hikes from the Bank of England this year, and with so many consumers facing a hit on their wallets from spiralling prices, savers need to vote with their feet if they are not getting a fair rate from their bank or building society.”