0.5% Cut

mrposhman

The ironic part to all of the latest decreases in rates is that the BOE are probably affecting the banks negatively.

Officially they want to reduce rates to reduce the rates of loans etc for businesses and on personal loans. By doing this is decreases banks profits on these loans but the bank wants them to lend more (despite making less money and having poor balance sheets).

Its not surprising that whilst LIBOR stays so much higher than the actual rates that banks do not want to lend.

Paul_Herring

At least it wasn't a full 1%.

Yet.

a7man

If they didnt do this the economy would go into turmoil, poor you you wont get your extra £20/ year. Maybe you should look into different investment options.

Berty

I would love to know why the interest rate for inheritance tax still stands at 3%. Is this not linked to the base rate.
!!!!!! turpin springs to mind:mad:

LesU

a7man wrote: »

If they didnt do this the economy would go into turmoil, poor you you wont get your extra £20/ year. Maybe you should look into different investment options.

Without my £20+£180 a year (some of us do have more than £5000 saved) and multiplied by the number of other people who now have less real money to spend, I guess the economy won't be in turmoil, it'll be flatlining.
Still, at least I didn't go for an alternative investment option of owning shares, property......

nicko33

where now for the Euro x-rate ?

bargain_hunter77

hi - i've got a few thousand pounds each in hsbc and lloyds tsb - the interest rate was really low to start off with - now it's been cut does that mean that the banks will charge me for keeping the money in ????

anyone know if lloyds or hsbc is charging customers (think i heard some banks were/might be doing this) ????

would be grateful for any info pleasexx

Lokolo

No. Theres plenty of threads already on this topic.

lisyloo

I would love to know why the interest rate for inheritance tax still stands at 3%.

With pension credit you are penalised at a rate of 10%.
For example if you have £500 in savings (above £6K) then this is assumed to provide £50 in income.
This has long been ridiculous not just recently but I think it's meant to be punitive rather than realistic.

jamieslucky7

bargain_hunter77 wrote: »

hi - i've got a few thousand pounds each in hsbc and lloyds tsb - the interest rate was really low to start off with - now it's been cut does that mean that the banks will charge me for keeping the money in ????

anyone know if lloyds or hsbc is charging customers (think i heard some banks were/might be doing this) ????

would be grateful for any info pleasexx

No. This MIGHT happen if we go in to negative interest rates, but even then the banks will probably offer 0%+.