The Cambridge gives savers full rate increase
September 6, 2022
The Cambridge Building Society is launching a number of fixed rate savings bonds and ISAs, with interest rates reflecting increases in the Bank of England base rate.
The new products include a One Year Fixed Rate Bond with an interest rate of 3.00% and a Two Year Fixed Rate Bond at 3.25%, a One Year Fixed Rate ISA at 2.50% and Two Year Fixed Rate ISA paying 2.75%. The Society is also relaunching its One Year Fixed Rate Business Bond at 1.55%.
The Cambridge is also passing on to variable rate savers 100% of the interest rate rise announced by the Bank of England in its latest review.
It is passing on the full 0.50% increase to all variable rate savings customers, and increases of 0.65% and 0.75% for others, from September, following the base rate change announced by the Bank of England on 4 August.
The Cambridge is one of the few UK financial institutions to pass on the entire increase to its savers.
Savings rates have been rising steadily in recent months and are at their highest rates since the beginning of 2009.
The Bank of England has increased the base rate a number of times this year, taking it from a historic low of 0.1% to the current 1.75% announced in August.
The Cambridge’s Chief Commercial Officer, Carole Charter, said: “We feel it is important to do as much as we can for savers. The Bank of England base rate has been low for a number of years now and fell even further at the start of the pandemic, so savers haven’t seen much of a return on their savings recently.
“At our core, we offer a safe place for savings, as a well-known and trusted building society on the high street for more than 170 years.
“We know how important that is for savers, who value our high street presence and the opportunity to interact with us personally in a way that the challenger banks cannot offer.
“Given these challenging economic times, we felt passing on the entire increase would be a timely way to reward the loyalty and trust that our savers place in us.”