2nd cahoot bonus savings interest reduction

derrick

kenshaz wrote:

Why not put this number on the www.saynoto0870.co.uk

It is already there, that is where i got it from a while back

MiserlyMartin

I just came on here after just recieving the email. I've got the one 'opened between 24 June and 1st September 2004' (originally was 5.65%)
5% was bad enough, I wonder why another change so soon afterwards. Safe to say that now I will be closing the account; this is a very poor rate.

Question is why are so many providers lowering their rates at the moment while there has been no base rate move? Especially since its looking like the next B of E move will be up? Any economists on here care to comment?

Could it be the punitive charges campaign, so they claw back the costs by reducing savings rates? Or could it just be some kind of vain attempt to kick start the housing market by lowering mortgage rates at savers expense?

[Deleted User]

Zwicky wrote:

It definitely does apply to the introductory accounts opened in 2004 but there is a second introductory account (referred to as a bonus savings account) which was available between Sept 2005 and Jan 2006 which pays a .75% bonus for the first six months from opening (5.25% gross or 5.15% for monthly interest) then .25% for 3 months and this therefore is not subject to the rate reduction.

Good thinking Batman. I had forgotten that account, opened on 17/1.

A further complication/confusion. :mad:

Swipe

MiserlyMartin wrote:

Could it be the punitive charges campaign, so they claw back the costs by reducing savings rates? Or could it just be some kind of vain attempt to kick start the housing market by lowering mortgage rates at savers expense?

Some banks' fixed term mortgages rates have risen over the last few days while savings accounts rates, at the same time, have been reduced.

MiserlyMartin

So hitting us at both ends then ok. So why the extra profit margins all of a sudden?

Swipe

MiserlyMartin wrote:

So hitting us at both ends then ok. So why the extra profit margins all of a sudden?

I've been told one of the reasons is they've just got into trouble for the extortionate fines they charge customers for unauthorised overdrafts and late payment charges on credit cards. Apparantly, they are not allowed to do it anymore.

thor

MiserlyMartin wrote:

I just came on here after just recieving the email. I've got the one 'opened between 24 June and 1st September 2004' (originally was 5.65%)
5% was bad enough, I wonder why another change so soon afterwards. Safe to say that now I will be closing the account; this is a very poor rate.

Question is why are so many providers lowering their rates at the moment while there has been no base rate move? Especially since its looking like the next B of E move will be up? Any economists on here care to comment?

Could it be the punitive charges campaign, so they claw back the costs by reducing savings rates? Or could it just be some kind of vain attempt to kick start the housing market by lowering mortgage rates at savers expense?

Pure greed I'm afraid. They need to maintain the million pounds a second profit rates so if they can't rip us off with fees they have got to find other ways to do it. There appears to be an unspoken gentlemen's agreement between all the banks and building societies that they will each take turns in reducing their saving rates and that nobody will rock the boat by daring to to go against the grain.
I remember a couple of years ago when there was someone here defending the banks moving their rates even when the boe rate stayed the same. He claimed that it does not matter what the base rates do and that it was the money markets(whatever that is supposed to mean) that dictates which way saving rates go. I had thought at the time that this guy must work for the banks as he was just peddling excuses but does anyone know what the 'money markets' are doing now. Have they been going down for the last year or so? This is the period where we have had a number of rate drops even though the boe has only gone doen by 0.25% and that in only one month!