Rip off banks!!

brightonalex

I've had a letter from HSBC saying they have dropped savings accounts rates to 1% "in line with inflation".

Why then have they not also dropped the rate at which they lend? How can they be allowed to get away with it?

mymatebob

My bank has dropped my mortgage rate by 1% so some are certainly dropping rates.
And they are businesses so they do - more or less - what they like

Farway

brightonalex wrote: »

Why then have they not also dropped the rate at which they lend? How can they be allowed to get away with it?

Because they are a commercial organistion and not a charity, as such they can do what they wish, and so can their customers who can leave & go elsewhere


BTW, declare an interest as HSBC shareholder

TeenWolf

Ask them to show you where it says inflation is just 1% ... I bet they can't! :rotfl:

Hungerdunger

TeenWolf wrote: »

Ask them to show you where it says inflation is just 1% ... I bet they can't!

I presume they mean "in line with the recent falls in inflation". Either they didn't make it clear, or the OP hasn't quoted their explanation in full.

dlk

They can set rates however they like! They are a business and when it comes to how can they get away with it, it is because it's up to them what they charge just like it's up to Asda how much they charge for a loaf of bread.

They actually have some of the lowest mortgage rates out there but only if you have a good level of equity which seems like prudent sensible borrowing to me giving good deals out but only to those who are low risk. As for the savings rates clearly they aren't as desperate to attract savers as some of the other banks in that they arent having the same liquidity problems as the other banks, only having £80 of mortgage lending per £100 of savings balances held with them. No other bank in the UK is in this position of havin gmore savings balances than money leant out hence why they probably aren't offering great savings rates.