The Bank of England raised its base rate from 4.5% to 4.75% a year at the beginning of August more than 30 banks and building societies increased their mortgage rates, some by more than the Bank of England interest rate rise, however all but a few have so far failed to pass on the benefits of the 0.25% rise to their savers.

UK savers have funds of £580 billion deposited, so an across-the-board rate rise of 0.25% should mean an extra £1.45 billion a year before tax in our pockets.

The Post Office and National Savings and Investments were quick to pass on the quarter-point rise, while others such as the Cheshire building society, Bank of Ireland and the Yorkshire building society put up rates by 0.35% on select accounts. The larger institutions tend to leave any rate increase to the last minute and so far only two of the big name providers had announced they were increasing their rates: ING Direct and Abbey.

The fact that the big banks and financial institutions are so quick to raise mortgage rates, but much slower to raise other rates, has long been a source of contention for savers.

It also needs to be stressed, however, that a large number of banks and building societies cut the rates on their savings accounts for no apparent reason in the first half of the year. So any rises will in effect put savers back in the same position as they were in at the end of last year.

Figures from independent financial researcher Moneyfacts, reveal that more than 40 providers have cut their savings rates in 2006, even though the base rate remained unchanged at 4.5% for almost a year.