Big banks hike mortgages but keep schtum on savings after base rate rise - MSE News

ValiantSon

Alexland wrote: »

It's nuts that a government body announces interest rate rises, building societies start to follow, banks consider following but the official government savings provider does the opposite!

Now now, Alex, you aren't being fair. NS&I have told us that they, "“continue to gives savers the opportunity to earn a fair rate and benefit from tax free interest, while deposits into all NS&I products are 100% secure, as NS&I is backed by HM Treasury.”

tel_

Alexland wrote: »

No the £2500 offer is on the Flex Direct current account and the interest is paid monthly.

I was referring to the 5% regular saver where you can contribute £250 per month. Each month it takes a few minutes to cycle my salary through multiple bank accounts moving money into regular savers as appropriate until what's left ends up in our main current account.

Alex

Ooops sorry, yes I'm getting them mixed up! :doh:

eskbanker

adonis wrote: »

National savings direct ISA rate being reduced, I know you can get better rates elsewhere but will they put the rate up again to make you think you are getting a good deal?

Direct ISA

Until 23 September 2018
Amount Interest rate Tax information £1+ 1.00% tax-free/AER Tax-free
From 24 September 2018
Amount Interest rate Tax information £1+ 0.75% tax-free/AER Tax-free

Alexland wrote: »

It's nuts that a government body announces interest rate rises, building societies start to follow, banks consider following but the official government savings provider does the opposite!

To be fair, the NS&I rate drop was announced three weeks ago, well before the base rate increase: https://www.moneysavingexpert.com/news/banking/2018/07/nsi-to-cut-direct-isa-rate

And technically the base rate increase decision was (made and) announced by the Bank of England Monetary Policy Committee, rather than a government body as such!

Alexland

eskbanker wrote: »

And technically the base rate increase decision was (made and) announced by the Bank of England Monetary Policy Committee, rather than a government body as such!

Sorry it's all government to me. If they don't have the freedom to get a bit drunk and frisky at the MPC Christmas Party and push up interest rates by 10% then they are not truly independent.

Alex.

eskbanker

Alexland wrote: »

eskbanker wrote: »

And technically the base rate increase decision was (made and) announced by the Bank of England Monetary Policy Committee, rather than a government body as such!

Sorry it's all government to me. If they don't have the freedom to get a bit drunk and frisky at the MPC Christmas Party and push up interest rates by 10% then they are not truly independent.

Alex.

Actually, on reflection, it probably is more accurate to categorise them as a government body, but one which is proud of its (perhaps notional) independence to operate without political influence since 1997, as per http://edu.bankofengland.co.uk/knowledgebank/how-is-the-bank-of-england-independent-of-the-government/:

The Bank of England is the UK’s central bank. We are owned by the UK government. But we have specific statutory responsibilities for setting policy – for interest rates, for financial stability, and for the regulation of banks and insurance companies. And we carry those out, for the good of the people of the United Kingdom, within a framework set by Government but free from day-to-day political influence.