Interest rates forecasted to go up but will saving rates do the same?

thor

Hands up all those who reckon that most banks & building societies won't put up their saving rates when the boe rate goes up later this year as it is expected to do. Well they managed to get away with it when the rate was going down so why not scrounge even more out of us and blame competetiveness/money markets?

barak

thor wrote:

Hands up all those who reckon that most banks & building societies won't put up their saving rates when the boe rate goes up later this year as it is expected to do.

The key word in your posting is 'most'. This website is one source of information that helps guide us towards the others. It takes a bit of trouble, but is well worth it :j

ManAtHome

They're more likely to introduce new products with more reasonable rates, edge up the old products by 1/2 any increase and leave it to intertia...

I doubt we'll see too many increasing their rates in anticipation or "due to market conditions" as they do with reductions. I was surprised this week when Leeds and Holbeck increased my online saver from 4.8% to 5% so keep your eyes open.

Stonk

ManAtHome wrote:

I was surprised this week when Leeds and Holbeck increased my online saver from 4.8% to 5% so keep your eyes open.

Wow - that's nice of them!

They should be increasing rates now. Money-market interest rates (which is what determines savings rates, much more than the BoE base rate, although they are indirectly related) for all periods into the future have increased a great deal over the last couple of months. It was precisely the reduction of those money-market rates that have caused many institutions to lower their offering recently - so by rights they should now be reversing that! I bet most won't though.

free4440273

it's typical of this country. i am a saver like yourselves and would dearly love my rates to go up, as they should be. i am with nationwide and their mortgage rates went up last week. alas, their savings rates were static

Speculator

ManAtHome wrote:

I was surprised this week when Leeds and Holbeck increased my online saver from 4.8% to 5% so keep your eyes open.

It's still showing as 4.60% on their website.

see http://www.leedsbuildingsociety.co.uk/savings/rates_online.html

equitydealer

Just noticed that B&B are advertising 2 year bonds at 5.15% and 3 yr at 5.25%. These bonds were not available before, all in anticipation of a rate rise later this year.

Good for savers, bad for mortgage payers!

al_yrpal

Got a letter from Natwest this morning putting e-savings rates DOWN!

equitydealer

al_yrpal wrote:

Got a letter from Natwest this morning putting e-savings rates DOWN!

Very naughty

Deemy

The BOE Interest rates tend to lag the market, Savings rates will rise higher BEFORE interest rates move higher, since they track money market rates which are already discounting about a 0.5% rise in the base rate 12 months forward

Don't worry it won't be long when the savings rates are back above 5%

ManAtHome

Speculator wrote:

It's still showing as 4.60% on their website.

Whoops, looks like I have the closed Issue 1 http://www.leedsbuildingsociety.co.uk/savings/rates_closed.html - even stranger... although not too sure about the "fixed until..." (yet! still it's instant access).

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extract from email received 11/05

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Online Saver increase in rate

Dear member,

As a valued online customer we are happy to announce an increase to your Online Saver rate to 5.00% gross* p.a./AER^. What’s more we are fixing this rate until 29 February 2008.

The current terms and conditions of your account will continue to apply so you can still enjoy access to your funds at any time, without notice or loss of interest. You also have the ability to add further savings at any time, up to a maximum of £100,000 (£200,000 for joint accounts).

I would also like to take this opportunity to thank you for your continued support of Leeds Building Society.