Britain’s banks are among the most profitable in Europe, if not the world. Indeed, the UK’s five biggest banks (HSBC, Royal Bank of Scotland, Barclays, HBOS and Lloyds TSB) made a combined pre-tax profit of £33.5 billion last year, which is an all-time record.
One reason why British banks are so profitable is that they are merciless middlemen. They pay inferior rates of interest to savers, while charging borrowers sky-high rates of interest. For example, according to independent financial researcher Moneyfacts, a typical savings account pays annual interest of less than 2.7% a year before tax. Quite frankly, with the Bank of England’s base rate currently standing at 4.75% a year, it’s clear that many savers are being taken for a ride!…