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Barclays Slashes I R On Savings

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http://money.independent.co.uk/personal_fi...ticle754349.ece

Barclays quietly slips in interest rate cut on savings

By David Prosser

Published: 10 June 2006

Barclays Bank this week
slashed interest rates across its range
of savings accounts even though the Bank of England has not cut its base rate since August last year.
The bank, which operates savings accounts under both the Barclays and the Woolwich brands, is cutting the interest it pays on its cash individual savings accounts (ISAs) by up to 0.45 percentage points. Its Woolwich Card Saver deal will now pay up to 0.3 percentage points less, while rates on the Barclays e-savings range will fall by up to 0.12 percentage points.
All the rate cuts took effect on 1 June, though
Barclays failed to advertise the reductions until four days later
, on 5 June, when it placed announcements in a national newspaper.
However, Andrew Jones, Barclays' retail banking product director, defended the timing of the cuts.
"Most of our main competitors have already changed their savings
rates and we have taken the opportunity to review ours," he said.
"The banks give all sorts of reasons for cutting rates but the one issue they don't mention is that their margins are under pressure and they need to boost profits," Thrussell said. "Many people will not have realised their interest rates have fallen, and I think
many banks will be looking at where they can tweak rates without customers noticing."

Oh, if only we could jack up the borrowing rates, pleeeeeeeease Mr. Brown can we? Can we? Pressure for some hikes for borrowing must be building given the worldwide tightening that is underway. A BIG problem for the Miracle Economy that relies on borrow and spend to keep HPI moving.

Edited by Realistbear

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When I was younger (lol!) you used to be encouraged to save ... nowadays it seems you're penalised!!! I remember Barclays lowering interest rates on my savings account a few years ago ... only I didn't know about it until the end of year statement came through!!! I can't blame people for trying to invest in something to make their money work for them (as saving certainly doesn't seem to do that anymore!), but if everybody is investing in the same thing (e.g. houses), surely a time must come when these investments start to work against themselves? IMHO we should be teaching our children the value of hard work and saving up for something that we really want ... blimey I sound like my Dad now! :blink:

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The cheeky b*****ds :angry:

I'll be setting the wheels in motion to move my ISA first thing Monday morning.

Anyone know of any ISA's returning 5% or more?

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Having a look round, it seems both National Savings & Investments and Bradford & Bingley are offering rates of 5% or over...

...but NS&I say they won't accept transfers, and B&B say they'll only accept transfers once the ISA is already open.

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The cheeky b*****ds :angry:

I'll be setting the wheels in motion to move my ISA first thing Monday morning.

Anyone know of any ISA's returning 5% or more?

This site helped me choose...

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Guest Bart of Darkness
blimey I sound like my Dad now!

Yup, that's happened to me as well!

Agree 100% about how savers are treated today.

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Guest pioneer31

Why is anyone surprised?

The big 4 banks have always been rotten value for money. I don't know why anybody deals with them

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They only slash them so that they can raise them when the rates go up, and hope you don't notice, how considerate of them.

Yup standard practice it seems.

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Oh, if only we could jack up the borrowing rates, pleeeeeeeease Mr. Brown can we? Can we? Pressure for some hikes for borrowing must be building given the worldwide tightening that is underway. A BIG problem for the Miracle Economy that relies on borrow and spend to keep HPI moving.

See my post on the FT. I believe the banks are pushing for hikes. As creditors the last thing they want is inflation, and risk premiums have been thoroughly squeezed, which goes against their interests too.

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Guest Charlie The Tramp

See my post on the FT. I believe the banks are pushing for hikes. As creditors the last thing they want is inflation, and risk premiums have been thoroughly squeezed, which goes against their interests too.

They were always happy in the past to inform you that they were now paying 11% gross on your deposits. ;)

Strange when the NSI sends me a letter saying they are pleased to inform me that they are increasing their rates on fixed bonds with immediate effect. :blink:

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      • down 5% +
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