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wmb194

Bobziz said:

2010 said:

Nationwide, Britain's biggest building society reported a 13.5% rise in pre-tax profit to £969 million for the six months to the end of September.

Apart from the silly adverts, where are the profits going, can`t be shareholders, definitely not members, so that leaves director`s overblown salaries and bonuses.

https://www.thisismoney.co.uk/money/markets/article-11443101/Nationwide-BS-profits-jumps-thanks-higher-rates.html?ico=mol_desktop_money-newtab&molReferrerUrl=https://www.dailymail.co.uk/money/index.html

Profits retained to mitigate increased risk of mortgage defaults..

Indeed. Its CET1 loss absorbing capital ratio is now a pretty bonkers 25.5%, or £12,957m up £487m from April 2022 so accounts for a large part of this period's profit. It really took the Co-op Bank's failure to heart and set about making itself as rock solid as it can be.

"Nationwide's capital position remains strong, with both the Common Equity Tier 1 (CET1) ratio and leverage ratio comfortably above regulatory capital requirements of 11.1% and 3.6% respectively. The CET1 ratio increased to 25.5% (4 April 2022: 24.1%)"

https://www.investegate.co.uk/nationwide-b.s.--nbs-/rns/half-year-report/202211180700048352G/

RG2015

youth_leader said:

I opened the HSBC on line bonus savings account last week, and have just received an email saying the interest rate is 1.50?  Can I find out when the interest rate was dropped from 3%?  

I got this email too but don't worry, it's a mistake. The correct rate does show on my account on the app and in online banking.

Bear in mind though, the reduced rate of 0.50% will show if you make a withdrawal during the month.

wmb194

youth_leader said:

I opened the HSBC on line bonus savings account last week, and have just received an email saying the interest rate is 1.30 up to £10K?  Can I find out when the interest rate was dropped from 3%?  

Don't worry it hasn't, that's a mistake. There's another thread covering this.

https://forums.moneysavingexpert.com/discussion/6404444/hsbc-obs-welcome-pack-error#latest

Qyburn

SamGFields said:

t1redmonkey said:

TSB had a 5% account a few years back, albeit on a limited amount of money.  I remember opening an account with them to use it

Aye, wasn't that on up to 2500 in your current account? Used to pay my monthly broadband did that.

If I remember correctly it was 5% and you only had to pay in £500 per month, plus cashback of £5 a month if you had so many DDs taken from it. Similar deal at the time with Nationwide.

mlc2009

This feels like a never ending cycle. BOE hikes rate. Banks don't match it until a week before next rate hike and then cycle repeats

youth_leader

Thank you very much for letting me know HSBC have made a mistake - and for the link.  I had used search,  but put HSBC on line bonus saving in full. 

mebu60

youth_leader said:

Thank you very much for letting me know HSBC have made a mistake - and for the link.  I had used search,  but put HSBC on line bonus saving in full. 

My bad for just calling it OBS in the title

thor

mlc2009 said:

This feels like a never ending cycle. BOE hikes rate. Banks don't match it until a week before next rate hike and then cycle repeats

Also more often than not, the banks don't even match the increase, e.g. this month hardly any of them passed on the full 0.75%. Of course they have no such problems immediately raising mortgage rates.

TisMeBill

mlc2009 said:

This feels like a never ending cycle. BOE hikes rate. Banks don't match it until a week before next rate hike and then cycle repeats

I suspect the timing is because just the closer we get to BOE annoncements, the more confident the banks are of what is coming. So they are factoring this in and their rate changes, which are based more on the rates they expect after annoncment than the actual rates at the time.

Eco_Miser

mlc2009 said:

This feels like a never ending cycle. BOE hikes rate. Banks don't match it until a week before next rate hike and then cycle repeats

Or is it: Banks guess what next week's BOE rate rise will be and match it in advance, with adjustment for error in previous guess. Repeat until rates flatline.