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Realistbear

Good News For Cash Savers-- I R Are Headed Up Up And Away

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http://www.moneyextra.com/news/news-good-times-021368.html

Good times for longer-term savers

An increasing number of providers have been increasing the interest rates they offer. re-pricing their fixed term savings products upwards, and in many cases the rate increases are quite substantial.
Rachel Thrussell, Head of savings at Moneyfacts said, "The battle to obtain best buy chart recognition continues with more institutions raising rates, and several new providers entering the market.
"We have not seen rates at such a high level for sometime now, and the trend shows no signs of fizzling out with speculation of more providers following suit."
These fixed interest rate increases appear to be a direct response to increasing swap rates in the City's money markets, where a similar impact is prevalent in the mortgage market.
So although consumers may be able to secure higher rate fixed savings, the cost of fixed rate borrowing is also increasing
.

Good times ahead as IR begin to soar! :lol:

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Good times ahead as IR begin to soar!

I received a letter today from Northern Rock telling me they are dropping the rate on my Silver savings account by 0.1 of a percent :angry:

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I havent seen any savings rate rises, where are they? Seen a few cuts though.

Edited by jonewer

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Good times ahead as IR begin to soar!

I received a letter today from Northern Rock telling me they are dropping the rate on my Silver savings account by 0.1 of a percent :angry:

Yes - I've seen lower payments on savings with higher rates on mortgages. They truly can have your cake and eat it!

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Yes - I've seen lower payments on savings with higher rates on mortgages. They truly can have your cake and eat it!

Perhaps the lenders are lowering savings rates to cover their backsides for when the repossessions start rolling in? They must be sweating if they are reading the news from the US where all that irrational exhuberance is coming to grief.

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Remember these are nominal interest rates (nominal = real + inflation).

It's the real rate that is important because this is your claim on future resources.

Clearly if the increase in inflation is greater than the increase in nominal rates (what do you think?) then the real interest rate is actually falling.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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