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Realistbear

V I Banks Cutting Savings Rates Hoping We Don't Notice

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http://www.telegraph.co.uk/money/main.jhtm...7/ixperson.html

Wealth workout: best-buy savings rates are trimmed

By Faith Archer (Filed: 27/05/2006)

Banks have been quietly cutting interest rates on what had been best-buy savings accounts, even though the Bank of England has not cut the base rate since August last year.
Alliance & Leicester trimmed 0.4 of a percentage point from its Direct individual savings account (Isa) this month, down from 5.15 per cent gross a year to 4.75 per cent and a shadow of the 5.4 per cent paid when it was first launched in 2004.
Rachel Thrussell, from independent statisticians Moneyfacts, said: "Small cuts tend to sneak through and people do not really notice, but on a large balance over the year it can have a substantial effect."
Jaqualyn Purcell from Northern Rock explained the bank does give customers advance notice of any changes.
Cahoot blamed the competition.
"We basically needed to take a commercial decision, monitoring our product in relation to what is happening in the rest of the market
," it said.

Blame the competition! My ar*e! :lol::lol::lol:

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Guest Alright Jack

http://www.telegraph.co.uk/money/main.jhtm...7/ixperson.html

Wealth workout: best-buy savings rates are trimmed

By Faith Archer (Filed: 27/05/2006)

Banks have been quietly cutting interest rates on what had been best-buy savings accounts, even though the Bank of England has not cut the base rate since August last year.
Alliance & Leicester trimmed 0.4 of a percentage point from its Direct individual savings account (Isa) this month, down from 5.15 per cent gross a year to 4.75 per cent and a shadow of the 5.4 per cent paid when it was first launched in 2004.
Rachel Thrussell, from independent statisticians Moneyfacts, said: "Small cuts tend to sneak through and people do not really notice, but on a large balance over the year it can have a substantial effect."
Jaqualyn Purcell from Northern Rock explained the bank does give customers advance notice of any changes.
Cahoot blamed the competition.
"We basically needed to take a commercial decision, monitoring our product in relation to what is happening in the rest of the market
," it said.

Blame the competition! My ar*e! :lol::lol::lol:

I'll explain why your savings rates are falling.

There is no demand for REAL savings. The economy doesn't work as it once did. Once upon a time, savings resulted in more money in the banking system thus increasing supply and falling price (i.e lower interest rates) this created a natural self-correcting business cycle.

Nowadays, this system is centrally managed and rather than savings controlling the interest rate, an interest rate is decided upon by the powers that be and then fudged into the market place by creating the necessary amount of money to make it so.

It seems that our leaders want low interest rates and so need to make money ever more plentiful.

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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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