i believe an "E" clip will stay with the handle when it moves. that is how it's designed. if you use one that allows the rod to move freely through it, it most likely will fall off. you can "slightly bend the ears in a circular direction and the clip will possibly stay on that way. you could also find a plastic flanged bushing that fits the rod and allows smooth movement, then drill the bracket hole to the bushing size, allowing the bushing to fit snugly or a possible "snap in" fit. if it were me, i would go the plastic bushing way. you can get these bushings at most well stocked hardware or home improvement stores.