Friday, Apr 25, 2008
Interest Rates up for Savers
guardian.co.uk: Nationwide ups rate as it seeks savers
Nationwide building society increased the interest rate paid on one of its savings bonds yesterday to 6.6% as Britain's savers were enjoying a bonanza because of the credit crunch. Banks and building societies are desperate to raise more funds because the crisis has closed off international money markets.
This has seen a savings war break out between building societies as they push up rates to attract more deposits.
Nationwide upped the interest rate it pays on its one-year, fixed rate e-saving bond to 6.6% — significantly higher than the 5.99% interest it is charging those taking out mortgages.
Posted by plato @ 08:17 PM (455 views) Add Comment
7 Comments
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1. yoyo1 said...
BOE cuts rates, retail savings rates increase? Somebody tell me, is this hyperinflation?
2. stillthinking said...
Insane
3. Seismicraptor said...
That's the third tweak this month... up 0.35% since the start of the month:
Until April 1st: 6.25%
April 2nd - April 17th: 6.30%
April 18th - April 24th: 6.40%
April 25th onwards: 6.60%
4. paul said...
I told you. The banks are now eager to attract savers. Sight tight for the time being, and WATCH THE SMALL PRINT. An upwards rates war could be in the offing as banks seek to attract savers to strengthen their positions with hard cash. If you don't have a sum to invest, pull up a deckchair anyway. This is going to be fun.
5. techieman said...
still thinking - why is this insane? yoyo hyperinflation? have you two been out drinking?
6. yoyo1 said...
Ohhhhh that sloe gin, never again.
7. Duncan said...
This is old news.
Regular saver accounts have been offering 7% + for ages.
I suppose the Building Societys like the idea of the hope that they will get some money in next month.
Now that the foreign banks won't subsidise their sub-prime buy to let mortgages the UK savers are their only hope.
Currently getting 7.5% from Britannia, Abbey and Skipton are also over 7%.
Bit hacked off about this years ISA. Signed up for a meagre 6% at Halifax then found that I could have done better
at Nationwide. DYOR rates are changing week by week.
:- Duncan
p.s. Any first time buyers thinking of saving up a 10% deposit may find they get there a lot quicker than they expect.
Good luck to them.