3 February 2022

Bank of England interest rates announcement

Principality Building Society has announced it will be increasing the rates for existing account holders of its variable rate savings products on 1st March as a result of today’s Bank of England announcement.

Principality will continue to review new variable rates savings accounts on an ongoing basis. The fixed rate bond and ISA range were increased on the 20th January this year, and will continue to be reviewed independently of variable rates.

More than 400,000 Principality savings accounts will see an increase in rates next month. On average, Principality paid 0.71% across all its savings accounts compared to the market average of 0.29%.*

Morgan Miles, Head of Product Pricing at Principality Building Society, said: “It has been a tough few years for savers given the low rate environment, so we’re happy to be able to increase the interest rates of our savings products. We have tried to support savers as much as possible, maintaining an average interest rate on our accounts which has been consistently higher than the market average.”* 

Having not passed on the Bank’s interest rate increase in December 2021 to standard variable rate (SVR) mortgage members, Principality has announced the latest rise means those customers will see 0.25% added to their current rates from 1st March. Recently, the building society also introduced lower interest rates at maturity for a range of its residential mortgage products.

* Source: CACI, 31/01/2022, weighted average interest rate for savings stock and new business.

Published: 03/02/2022