As the Bank of England announces its 14th consecutive rise this afternoon, the Society has announced they will continue to ensure their savings accounts are competitive and continue to support savers.
Throughout these consecutive rises, since December 2021, the Society has passed on an average of 60% of Bank Base Rate increases to its savers and has protected its borrowers by only passing on 54% to its mortgage standard variable rate for borrowers.
For the first five months of 2023 the Society’s average savings rate was 2.76% compared to the market average of 1.87%, which means the Society has paid on average 0.89% more than the market average, generating more interest for its savers.
Some of the new savings rates that will be introduced are on variable rate accounts which offer competitive rates up to 4.85% once the Bank base rate is applied. Together with competitive fixed rate ISA accounts, the Society have also created more choice for members to maximise their tax allowances.
Looking after our members
Chris Brown, Director of Products and Marketing at Darlington Building Society, said: “We are committed to looking after our members. Over the last 18 months we have listened to feedback from our members and have made several changes to the rates on our accounts. We continue to review our accounts and create a wider choice for them, to ensure we are offering competitive rates to both new and existing members.
“With the introduction of the latest base rate of 0.25%, we’re looking to pass on as much of that as we can to both new and existing members savings accounts, which we hope will be welcome news.
The Society will introduce rate changes to all savings accounts in the coming weeks, with some accounts benefitting from a full 0.25% rate increase.
Chris continued: “It’s not just rates that our members look for and we’ve responded to this by increasing the maximum balance on our High-Five Saver by £50,000 to £100,000 in July. This now allows members to save more and with an account that supports a local charity. We’ve also recently launched our new Triple Access ISA, which allows instant withdrawals three times a year while benefitting from tax free savings.
“The increase in rates is further welcome news to savers, after a period of historically low interest rates. Given the changes in rates, we would encourage anyone who wants a savings review to come and chat to us as we’re here to help.”
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