Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he is taking steps to help ensure that bank savings accounts offer interest rates of at least the same level of the Bank of England base rate.

The pricing of financial products, including savings accounts, is a commercial decision for firms and the Government does not seek to intervene in such decisions. The Bank of England’s independent Monetary Policy Committee (MPC) sets the base rate of interest, which is known as the Bank Rate, to achieve its primary objective of maintaining price stability. MPC decisions over Bank Rate guide commercial banks’ decisions over the retail interest rates they charge on loans and pay on deposits.

More broadly, the Government is committed to ensuring people are supported to save, and that they can access a wide range of competitive savings products. The retail savings market currently offers a range of competitive options to savers, who can now access the highest rates in recent years on a variety of instant access and fixed-term products.