The Top Easy Access Savings Discussion Area

2010

The providers should be reacting to BoE increases within hours/days not up to five weeks later.

If it was decreases it would be a different matter, I`m sure.

jaypers

So at present I’ve focussed my Easy Access holding in Charter and Investec, the latter as I like to have funds that can be accessed immediately into my current account if needed. Really can’t be fussed opening any more accounts, already having Atom, Marcus and Chase emptied out. Had a bit of a laddering system going with fixed rate accounts that I’ve put on ice for a couple of months. Envisage the easy access rates nudging up towards 5% now, with fixed rate accounts not doing very much now, and maybe even easing off a bit towards the end of the year. As inflation starts to fall, suspect much of the conversation across this forum will start to focus on best methodology for hanging onto the best rates for as long as possible, although can’t ever see the interest rate getting anywhere as near to the lows of the last 10 years or so. 

PixelPound

2010 said:

The providers should be reacting to BoE increases within hours/days not up to five weeks later.

If it was decreases it would be a different matter, I`m sure.

Think you have it wrong. The recent spate of increases are not based on last times 50bp but likely that this Thursday will see 25bp to 5.25%. eg Cynergy going from 4.30% to 4.55% and others a bit less (Ford Money 4.35-4.5%)

masonic

2010 said:

The providers should be reacting to BoE increases within hours/days not up to five weeks later.

If it was decreases it would be a different matter, I`m sure.

When the base rate was cut from 5% to 0.5% between September 2008 and March 2009, it took many months for savings rates to reduce by an equivalent amount. Mainly because forecasts took on a recency bias and didn't factor in a decade of low rates. The same scenario is playing out again, although now with inflation, and hence future interest rates, being underestimated. Ultimately, savings rates depend on two factors, namely supply/demand and loan books. Loan books are indirectly linked to the base rate with a lag, as borrowers must be given notice of increases to their interest rate, and the rate on some debts is fixed for a term. Supply and demand also drives the savings market, so the timing of the legs up in rates are driven by competition between providers. So it is expected that savings rates increases will be slower than base rate increases in a hike cycle, just as we are observing. Money market funds are a better means of getting exposure to inter-bank lending rates if that's what you are after, as your returns aren't filtered through a layer of regulated consumer debt.

2010

nic_c said:

2010 said:

The providers should be reacting to BoE increases within hours/days not up to five weeks later.

If it was decreases it would be a different matter, I`m sure.

Think you have it wrong. The recent spate of increases are not based on last times 50bp but likely that this Thursday will see 25bp to 5.25%. eg Cynergy going from 4.30% to 4.55% and others a bit less (Ford Money 4.35-4.5%)

I haven`t got time to check, but I doubt that most providers have raised their rates twice since the 22nd June.
If the two above have they are probably the exception.

wiseonesomeofthetime

Well, I found out today that if you let the Open Banking connection lapse with Chip, you cannot withdraw your funds.

Thought I'd allow it to lapse, just to see if it would still withdraw to debit card. It wouldn't. Just kept getting "something went wrong" message.

OB reconnected and withdrawal was as instant as ever.

Curiosity satisfied 😂

FindingBBob

2010 said:

nic_c said:

2010 said:

The providers should be reacting to BoE increases within hours/days not up to five weeks later.

If it was decreases it would be a different matter, I`m sure.

Think you have it wrong. The recent spate of increases are not based on last times 50bp but likely that this Thursday will see 25bp to 5.25%. eg Cynergy going from 4.30% to 4.55% and others a bit less (Ford Money 4.35-4.5%)

I haven`t got time to check, but I doubt that most providers have raised their rates twice since the 22nd June.
If the two above have they are probably the exception.

I would think that a few have  - Ford definitely have, this is taken from the historic rates on their site.. 

poppystar

FindingBBob said:

2010 said:

nic_c said:

2010 said:

The providers should be reacting to BoE increases within hours/days not up to five weeks later.

If it was decreases it would be a different matter, I`m sure.

Think you have it wrong. The recent spate of increases are not based on last times 50bp but likely that this Thursday will see 25bp to 5.25%. eg Cynergy going from 4.30% to 4.55% and others a bit less (Ford Money 4.35-4.5%)

I haven`t got time to check, but I doubt that most providers have raised their rates twice since the 22nd June.
If the two above have they are probably the exception.

I would think that a few have  - Ford definitely have, this is taken from the historic rates on their site.. 

and that excludes the current rate I think. It’s showing as 4.41 (paid monthly) so I guess that’s 4.5 or just above at AER. wef 27th July

wiseonesomeofthetime

Yeah Ford Money have raised interest rate four times since last meeting 👍

Chip, three times, according to my records.

2010

Yeah, four times to get to the 50bp the BoE raised on 22nd June 

I hope Ford automatically raised everyone`s rate and you didn`t have to keep opening the new issues.