Can anyone explain to me why banks and building societies are paying such a ‘pathetic’ rate of interest to savers?

If I borrowed money from them, they would want a great deal more interest than one per cent or less from me.

When questioned about this, I’m told “don’t blame us! It’s the base rate that dictates what we pay you!”

Why should we lock money away with them and receive almost nothing in return? They use this to lend out in loans and charge about five per cent in return. It’s all very well keeping rates low for mortgage repayments. But the capital still has to be paid eventually. So come on, play fair, offer savers at least three per cent in the current climate.

J BROOKS
Kennett Road
Oxford