Interest Rate Rise (merged)

steve!_10

I'd love it if ICICI raised theirs ...

Chrismaths

At least I'm no longer looking so stupid with the Intelligent Finance ISA, as it tracks base rates!

Stonk

Everest wrote:

Priced in I would agree with, but surely discounted to reflect uncertainty as to when rates would rise?

True - but discounted only by a couple of months' worth. Although the rise was only about 25%-expected this month (hence the surprise), almost everyone expected it within the next 2 or 3 months.

So perhaps the fixed rate people are marginally better off this time!

KTF

Which savings accounts (if any) are linked to the base rate at the moment?

Financial_Savvy

Is it common for Banks and Building Societys to put the borrowing rates up very quickly, and the savings rates in about 2 months?

I have a fixed mortgage so I am not fussed, but good for savings I guess, although find me an ISA that pays better than 5.2% with A+L? Will there be some competition now then?

YorkshireBoy

KTF wrote:

Which savings accounts (if any) are linked to the base rate at the moment?

You'll find 34 of them on Moneyfacts. Just use the 'guaranteed rate' filter.

ashcarrot

Also if anyone seen mortgage increases yet no savings increase I'd be interested.

Me is going to use this increase to reevaluate some of my accounts.
First Direct & Halifax you have been warned.

c_smith

steve! wrote:

I'd love it if ICICI raised theirs ...

ICICI should be raising theirs shortly for their Hi-Save account. They guarantee the interest rate on this account to be at least .25% above the base rate until the end of 2007.

ashcarrot

Ahhh but they're already .40% above the base rate (4.75%) at the interest rate of 5.15% so they dont have make that move although it would be good. If First Direct goes up to 5% it could make the choice more difficult between the two.

Moggles_2

but beware the First Direct e-Savings catch!

If any withdrawals are made, no interest will be paid on the whole account balance for that calendar month.