MSE News: UK base rate decision looms - what it means for you

whatleytom

Don't be naive, BoE bank rate is just one single element of consideration used by retail banking providers to set their own price.

tonyt1

now whos been naive

whatleytom

There's good reason as to why banks pass on rate increases to mortgage customers, yet not savers. Why would you propose that may be?

tonyt1

come back here in a few months , the savings rate will still be 1.5% on Santander 123

whatleytom

And that explains how paying 1.00% over base is "ripping us all off" how?

alanq

I recall when it was the norm that savings interest rates were below BOE base rate. (I realise that for some financial institutions that is still the case). At that time I had an account that offered a guaranteed 0.25% above BOE rate and regarded that as excellent.

funguy

westv wrote: »

Presumably NS&I rates might be going up at some point.

No announcement from them yet....

msallen

tonyt1 wrote: »

do you actually need a reply . . . lol

No, but it might be in your interest if you have one that stops everyone assuming you are utterly ignorant of all things financial.

melbury

I can't understand why an increase to 0.5% is supposed to be such good news for savers.

There was no need to cut it after the EU referendum to 0.25% - just Carney being a prat - and even if he hadn't it would still only be going up now to 0.75%, hardly cause for celebration. I still maintain that 5%-7% would be a fair compromise;)

The borrowers have had it good for a very long time.

boatman

melbury wrote: »

I can't understand why an increase to 0.5% is supposed to be such good news for savers.

There was no need to cut it after the EU referendum to 0.25% - just Carney being a prat - and even if he hadn't it would still only be going up now to 0.75%, hardly cause for celebration. I still maintain that 5%-7% would be a fair compromise;)

The borrowers have had it good for a very long time.

There are probably a lot people who would be happy to be saving some money, there are still many who can't afford to buy, and now it's looking far less likely,