Progressive Building Society drop isa rate

mark8906

I have had an issue one cash isa with the PBS here in northern ireland for 10+ years....i was getting 2.6% for the past lot of years since the rate dropped.Today i received a letter telling me that the rate will be cut to 1.9% from mid June just because they want to do it.....bloody chancers:(

butterflymum

Could have been worse - you could have had it with Ulster Bank, who are dropping their rate to 1.25%

mark8906

Why is it dropping though,nothing has changed.........the rate for up to £30,000 is staying the same....seems a bit unfair if you have more than that you get screwed....think i'll lift the lot and blow it...lol

PeacefulWaters

When you take out a savings account with a variable rate then the rate might, occasionally, vary.

It's a simple concept.

planteria

i can understand Mark's frustration though, PW

don't blow it Mark, but by all means shop around. i'm a member of Progressive Building Society too, but with rates so low i currently have c£100 in there just to retain membership, waiting for 'better times' and use my ISA allowance for Stocks & Shares.

mark8906

PeacefulWaters wrote: »

When you take out a savings account with a variable rate then the rate might, occasionally, vary.

It's a simple concept.

Usually with the bank of england rate though......its been sitting at 2.6% for the five or so years the bank of england rate has been at 0.5%.....nothing has changed there.

Also why isn't the drop right across the board?......its only isa accounts with over 30k being hit.

PeacefulWaters

mark8906 wrote: »

Usually with the bank of england rate though......its been sitting at 2.6% for the five or so years the bank of england rate has been at 0.5%.....nothing has changed there.

There are numerous other reasons for the rate to change of which BofE rate is only one.

Also why isn't the drop right across the board?......its only isa accounts with over 30k being hit.

Are they paying such a high rate compared to the rest of the market for their other products and tiers? I suspect not.

planteria

they're not.
and, with the government support, Building Societies are less reliant on Savers Savings to lend to Mortgage Borrowers, so they don't need to pay good savings rates.