Nationwide to increase savings rates...

Kazza242

Nationwide have today announced that they will be increasing their savings rates, following the BOE base rate rise to 5.50% on 10th May. Nationwide will reveal details of their new savings rates later this month. The new rates will come into effect from 1st June 2007.

**Despite today's announcement by Nationwide, they may not raise all savings rates and those rates which are increased, may not be by the full 0.25%.**

See the announcement here.

Milarky

"NATIONWIDE TO INCREASE MORTGAGE AND SAVINGS RATES"

That's inevitable - announce putting up mortgage rates w.e.f. 1 June. I hope they don't leave this precious 'meeting' where they supposedly 'decide' (based on reading the press what others have done first, just the rest of us) until something like the 28th of the month - as usual. Watch out in particular whether they talk about having raised ''all savings rates'' but exclude the Flexaccount from any rise as they have not increased this since April 06 (i.e. not for the last three increases in the BOE base rate)

bristolleedsfan

Milarky wrote: »

That's inevitable - announce putting up mortgage rates w.e.f. 1 June. I hope they don't leave this precious 'meeting' where they supposedly 'decide' (based on reading the press what others have done first, just the rest of us) until something like the 28th of the month - as usual. Watch out in particular whether they talk about having raised ''all savings rates'' but exclude the Flexaccount from any rise as they have not increased this since April 06 (i.e. not for the last three increases in the BOE base rate)

i agree but then i dont believe that nationwide are very good for savers anyway, imo people should link nationwides esaver ( 5.3% gross) to flexi account keep minimum amount in flexisaver, as funds can be moved instantly from esaver-flexi account, doesnt pay to keep much more than is needed in nationwides esaver either as 5.3% is easily beaten by other online account rates

MattB_4

Milarky wrote: »

That's inevitable - announce putting up mortgage rates w.e.f. 1 June. I hope they don't leave this precious 'meeting' where they supposedly 'decide' (based on reading the press what others have done first, just the rest of us) until something like the 28th of the month - as usual. Watch out in particular whether they talk about having raised ''all savings rates'' but exclude the Flexaccount from any rise as they have not increased this since April 06 (i.e. not for the last three increases in the BOE base rate)

I would imagine there will be several scenarios for each possible rate change. You do have to watch your competitors though, or you end up over/under competitive when you don't want to be. I would also imagine it takes some time to manage changes of literature and any system changes so you couldn't make a decision that late.

bristolleedsfan

MattB wrote: »

I would imagine there will be several scenarios for each possible rate change. You do have to watch your competitors though, or you end up over/under competitive when you don't want to be. I would also imagine it takes some time to manage changes of literature and any system changes so you couldn't make a decision that late.

interest rate decisions should be simple imo, base rate changes 0.25% either way, morgage rates and savings rates change 0.25% either way, sadly various organisations do watch for others not passing on savings rate increases in full so they can follow suit, equally institutions often dont pass full increases on some products and hope nobody notices

contrary to what one certain poster believes i believe the more posts their are commenting on who has passed on a base rate increase/how much the increases passed on were/date of passed on increase and who didnt pass on the full base rate increase will encourage some institutions to behave better as many of them read this forum