The Top Easy Access Savings Discussion Area

jaypers

ForumUser7 said:

t33 said:

Have been bogged down with other stuff, so not au fait at the moment.  What banks/BS have announced they are increasing rates following the last BofE increase but are yet to do so?

I can think of YBS, Charter Savings offhand.  Any others?

Thanks

• Hanley Economic BS 01/07/2023
• Earl Shilton BS 01/07/2023
• Skipton BS 03/07/2023
• Hinckley and Rugby BS 03/07/2023
• Kent Reliance 11/07/2023
• West Brom BS 12/07/2023
• Yorkshire BS Date TBC, but they will be increasing rates
• Coventry BS Date TBC, but they will be increasing rates
• Leek BS Considering impact, reviewing rates
• Principality Considering impact, reviewing rates
• Darlington Considering impact, reviewing rates
• Ecology Considering impact, reviewing rates
• Leeds BS Considering impact, reviewing rates
• Nationwide BS Considering impact, reviewing rates
• Scottish BS Considering impact, reviewing rates
• Buckinghamshire BS Considering impact, reviewing rates
• Newbury BS Considering impact, reviewing rates
• Furness BS Considering impact, reviewing rates
• Chorley BS Considering impact, reviewing rates

Charter Savings 7/7/2023 - Existing closed accounts but I suspect they will be releasing a new EA.

allegro120

Bridlington1 said:

london21 said:

Why does big banks like Santander not increase their interest rates, this big banks are greedy.

I have moved funds to Chip today but seems would have to open Tandem not to go over the £85k limit.

These are often done as headline grabbing accounts to bring some good publicity and to draw in new customers who will take out their more profitable products later on. 

That's exactly the motif behind big banks' offerings. The target is not the amount of cash, but the amount of customers many of which will buy their services (mortgages, insurance, loans, overdrafts etc.).

intalex

ForumUser7 said:

Bear in mind HSBC is announcing new rates shortly https://www.msn.com/en-ie/news/uknews/hsbc-uk-planning-to-boost-its-savings-rates/ar-AA1cX7V1 possibly from thursday like first direct

First Direct have something lined up for Thursday??

ForumUser7

intalex said:

ForumUser7 said:

Bear in mind HSBC is announcing new rates shortly https://www.msn.com/en-ie/news/uknews/hsbc-uk-planning-to-boost-its-savings-rates/ar-AA1cX7V1 possibly from thursday like first direct

First Direct have something lined up for Thursday??

Yes, screenshot below:

george4064

Moving the bulk of my Emergency Fund savings from Shawbrook (3.84%) to Chip (4.21%).

'Luckily' I've got a lot of these savings accounts open from before, so it's more the case of transferring money around than constantly opening new accounts.

I do wonder how long Chip will remain at the #1 spot.

simon_or

london21 said:

Why does big banks like Santander not increase their interest rates, this big banks are greedy.

I have moved funds to Chip today but seems would have to open Tandem not to go over the £85k limit.

Customer inertia. Savings accounts sitting in big banks are remarkably sticky so they can get away with paying piddly amounts of interest and using those deposits for loans and mortgages.

If, like you did, more people vote with their feet and take their money elsewhere, they'll put a bit more effort into upping their rates.

t33

ForumUser7 - a much more comprehensive list than I'd expected, thanks very much!

Bridlington1

simon_or said:

london21 said:

Why does big banks like Santander not increase their interest rates, this big banks are greedy.

I have moved funds to Chip today but seems would have to open Tandem not to go over the £85k limit.

Customer inertia. Savings accounts sitting in big banks are remarkably sticky so they can get away with paying piddly amounts of interest and using those deposits for loans and mortgages.

If, like you did, more people vote with their feet and take their money elsewhere, they'll put a bit more effort into upping their rates.

Though on the flip side if too many people became rate tarts I suspect the banks would be unwilling to offer any market leading rates since they'd be pounced upon with the banks getting little if anything in return for their troubles.

I would say to really maximise the attractiveness of savings rates and create the optimum conditions for us rate tarts you would need something in the middle, i.e. the majority to be reluctant to move their savings but at the same time also be prepared to shift their savings if they feel the banks are starting to take the Michael with their poor savings rates for too long. This way the banks still make money from loyal customers but at the same time they can still bag new profitable customers by offering competitive products, in turn pushing up the top rates.

allegro120

george4064 said:

I do wonder how long Chip will remain at the #1 spot.

Nobody knows this, but it is worth using the offering whilst it's there.

pecunianonolet

We have agents on each side. We have banks offering assets such as bank accounts, cards, savings accounts, mortgages etc and customers who demand them. Customers can freely decide which offers are suitable to their needs and therefore decide where they keep their money, at what rates, for how long. Banks have the opportunity not to do business with you as well, as many, including myself, have experienced. That's called a market.

Why do so many call for regulations, government interventions or make absurd proposals e.g. banks should send out emails of what their competitors offer. I simply don't understand that.

The key regulation we require is from an independent regulatory body to make sure their are no monopolies, price fixings, there is sufficient level of competition, securing a base level of banking accessibility such as branches, hubs, cash machines so all parts of society (elderly, people with disabilities, etc.) have access to the same level of service. 

The only intervention by the government I would very much welcome is to educate people in school about these things in more detail. Sadly, too many know very well who was last on Big Brother, can talk for hours about LoveIsland but not understand the very basics about life as this is all they consume.

Everyone can go onto a comparison website like moneyfacts, read on MSE or contact their bank asking for a better deal. The independent regulatory body could run a site like moneyfacts to gurantee independence and no commercial interest. 

I would compare that with your local farmers market, you go and check out who has the best looking apples, you compare prices and if the offer is comparable buy the cheapest deal. You make a rational decission. (Economic theory used to claim every individual acts fully rational)

Maybe you also compare more soft factors like who uses a lot of fungicide vs growing organic, maybe the farmer is your neighbour and you knowm him/her very well for years or you always bought from one specific farm because your family just simply always bought there and you feel loyal, even if the apples are more expensive, you maybe never wanted to speak with each farmer on the market about their apples because that is too time consuming for you. You are happy with your choice. 

You can apply the farmers market example now to the finance world and deem us as a very minority group, (perhaps the ones waiting well ahead of the market opening to snap up the best apple deal as soon as possible) discussing in a specific forum.

Now, imagine the farmers would need to communicate all their deals to the council ahead and the council would do a post box drop with a biased opinion that you should only by from farmer A, because B is much more expensive and always shows up late. 

Above is not perfect, but maybe illustrates why some of these things are just not relevant.

My money = my responsibility

Reading recommendation: https://en.wikipedia.org/wiki/Homo_economicus