Interest rate retreat?

Sceptic001

So Egg pulls its 3.25% instant access account, West Brom BS pulls its 1 year fixed 3.9% account and Bucks BS cuts its Regular Saver rate (twice!!!). All of these were market leaders.

Is this just a coincidence, or does it mark the beginning of a retreat in rates for savers?

gozomark

As the credit crunch eases, savings rates will ease, and will lose some of their premium to base rate.

Hungerdunger

On the other hand, Principality have increased the rate on their 3-year fixed rate account to 4.55%, and the Yorkshire is launching an even higher rate bond.

I would think that to a certain extent the rates are changing according to how desperate the banks and building societies are for cash. West Brom have been offering market-leading rates for several weeks now, so perhaps they simply don't need much more money.

njb55rtd

Going back to the Egg account, I seem to recall (but can't find it in writing) that for accounts opened prior to today the 2% bonus was fixed for 12 months and as it's only the bonus rate that's been reduced, the 3.25% (total) still applies to those accounts for the 12 months. At least, that's my understanding. Nick.

tonyg_2

njb55rtd wrote: »

Going back to the Egg account, I seem to recall (but can't find it in writing) that for accounts opened prior to today the 2% bonus was fixed for 12 months and as it's only the bonus rate that's been reduced, the 3.25% (total) still applies to those accounts for the 12 months. At least, that's my understanding. Nick.

I have it in writing from Egg...

"This consists of the Egg standard interest rate of 1.25% AER gross per annum variable and a fixed bonus interest rate of 2% AER gross per annum."

Baldur

njb55rtd wrote: »

I seem to recall (but can't find it in writing) that for accounts opened prior to today the 2% bonus was fixed for 12 months and as it's only the bonus rate that's been reduced, the 3.25% (total) still applies to those accounts for the 12 months.

The rates for Egg's Savings Accounts are clearly shown on their website: