Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Banks Not Passing On I R Hike To Savers

Recommended Posts

http://news.independent.co.uk/business/new...icle1219127.ece

Savers miss out on rate rise

By David Prosser, Personal Finance Editor

Published: 14 August 2006

Leading banks and building societies are under fire for using the increase in base rates announced by the Bank of England's Monetary Policy Committee earlier this month as an opportunity to increase profit margins.
While almost all mortgage lenders are expected to pass on the 0.25 percentage point increase to borrowers with effect from the beginning of next month, many are not planning to offer extra interest to customers with savings accounts.
Moneyfacts, the savings market analyst, said that prior to the base rate increase, more than 40 banks and building societies had actually cut savings rates since the start of the year, despite the fact there has been no base rate reduction since last August. None of the providers to have reduced rates now intend to increase what they pay by more than this month's base rate rise, despite charging borrowers more.
"Now that base rates have increased, many consumers will be looking for increased returns on their savings," said Rachel Thrussell, head of savings research at Moneyfacts. "However, if they have been one of the unfortunate customers to have seen their rates fall over the last seven months, they may in fact be no better off, so the only winner in these cases seems to be the provider."
So far, around 20 mortgage providers - including Britain's biggest lender, Halifax Bank - have increased their standard variable rates to reflect the base rate increase.

If people started saving it would remove money from the borrow and spend culture that has been driving the Miracle Economy. It would also reduce the number of loans and hence commissions that would decline if people began saving more and spending less. The Miracle Economy depends upon the addiction to borrow and spend continuing. Going through a withdrawl means recession.

Share this post


Link to post
Share on other sites

What a naive little man this Prosser is! The banks can charge whatever interest they like and they can pay whatever they like too. If they want, they can double the mortgage rate and halve the savings rate. It's totally up to their commercial judgement. What does Prosser want? A government imposed price structure? Cretin!

As with all other businesses, the banks charge what the market will bear. Why would they pay more interest than just enough to keep their deposits at a level that they can profitably lend out again. And, there will be times when they will want people to take their savings away because they can't make good, profitable, use of them.

Leading banks and building societies are under fire

"under fire..."? "...under fire"? From whom? Who's authorised to put the banks "under fire", whatever that's supposed to mean? Is there some body out there that the banks are answerable to on matters of commercial judgement? I doubt it? In fact I know there isn't. So, what's he talking about?

p

Share this post


Link to post
Share on other sites

What a naive little man this Prosser is! The banks can charge whatever interest they like and they can pay whatever they like too. If they want, they can double the mortgage rate and halve the savings rate. It's totally up to their commercial judgement. What does Prosser want? A government imposed price structure? Cretin!

As with all other businesses, the banks charge what the market will bear. Why would they pay more interest than just enough to keep their deposits at a level that they can profitably lend out again. And, there will be times when they will want people to take their savings away because they can't make good, profitable, use of them.

"under fire..."? "...under fire"? From whom? Who's authorised to put the banks "under fire", whatever that's supposed to mean? Is there some body out there that the banks are answerable to on matters of commercial judgement? I doubt it? In fact I know there isn't. So, what's he talking about?

p

work for a bank by any chance ? :D

maybe watchdog will be asking the same question next time its on ?

Share this post


Link to post
Share on other sites

work for a bank by any chance ? :D

Of course not! As everyone knows, I'm a full time, overpaid, underworked employee of the NuLabour and never say anything other than defend that horrible crowd! ;)

p

Share this post


Link to post
Share on other sites

We save with First Direct, and noticed they'd reduced the rates earlier this year.

Personally I think it is disgusting that they don't raise their savings rates in line with their borrowing rates, but if they all follow each other you can't win.

ICICI bank seems to be offering the best rates at present, which i'm tempted to move to. It is just such a hassle trying to move large amounts of money around these days.

Share this post


Link to post
Share on other sites

http://news.independent.co.uk/business/new...icle1219127.ece

Savers miss out on rate rise

By David Prosser, Personal Finance Editor

Published: 14 August 2006

Leading banks and building societies are under fire for using the increase in base rates announced by the Bank of England's Monetary Policy Committee earlier this month as an opportunity to increase profit margins.
While almost all mortgage lenders are expected to pass on the 0.25 percentage point increase to borrowers with effect from the beginning of next month, many are not planning to offer extra interest to customers with savings accounts.
Moneyfacts, the savings market analyst, said that prior to the base rate increase, more than 40 banks and building societies had actually cut savings rates since the start of the year, despite the fact there has been no base rate reduction since last August. None of the providers to have reduced rates now intend to increase what they pay by more than this month's base rate rise, despite charging borrowers more.
But RB, I'm positive I've seen figures that the savings ratio is climbing, from a pitiful low in late 2004. The so-called 'miracle' economy relied on us not saving but spending; now we're slowly saving thereby putting retail into a near recession and this is just the beginning
:D

Share this post


Link to post
Share on other sites
But RB, I'm positive I've seen figures that the savings ratio is climbing, from a pitiful low in late 2004. The so-called 'miracle' economy relied on us not saving but spending; now we're slowly saving thereby putting retail into a near recession and this is just the beginning

If this is true, then although we are far from having a saving culture, it is not going to surprising. Just looking around this forum, you will see many members with £20K-£100K in savings and I would not be surprised if all the the non purchasing FTB funds are starting to grow to an amount which could be statistically noticeable.

It's us versus the MEW consumers for control of the savings ratio :lol::lol::lol:

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.