Ford Money Flexible Saver Interest Rate Reduction AGAIN!

SaverRate

Just received an email advising the interest rate on the above account will drop to 1.07% Gross/AER (variable) on 3rd July 2020.

SA100

Def pays to be spender getting into debt - then a saver. We are .1% off Zero interest rates at the BoE. I assume we are going to be heading towards a Negative interest rate. When the recession really kicks in. As they have nowhere else to go. What are we supposed to do with our savings than... as we will be paying the bank to keep our money if they pass it on to Current Account holders. 

Thrugelmir

Ford aren't going to be financing many new cars currently. If anything , the reverse , with people seeking payment holidays. 

Sailtheworld

Mortgage rates are available from Nationwide (hardly the most complicated of lenders) for around 1.49%. Just how much interest do people think they should get in savings interest in such a low interest environment?

Rates have been falling since the 90's and have been rock bottom for years. Annoying for cash savers but should be no surprise.

bowlhead99

Sailtheworld said:

Mortgage rates are available from Nationwide (hardly the most complicated of lenders) for around 1.49%. Just how much interest do people think they should get in savings interest in such a low interest environment?

Rates have been falling since the 90's and have been rock bottom for years. Annoying for cash savers but should be no surprise.

I agree. The rate now offered to Ford savers is between five and six times the bank base rate and around double the level of sterling 3-month LIBOR, which sounds pretty good for an instant access account (overnight LIBOR is more like 0.05%).

HarryDavies01 said:

 will drop to 1.07% Gross/AER (variable) on 3rd July 2020!!!! 

Given market conditions, I simply don't see this news as shocking enough to warrant four exclamation marks

where_are_we

"Be thankful for small mercies" - At least they are dropping their rates in 2 steps. My Ford Flexible Saver is currently paying 1.35%. This reduces to 1.25% on 16th June. Then reduces to 1.07% on 3rd July. Could Bowlhead give his score of how many exclamation marks this news deserves?  

bowlhead99

where_are_we said:

"Be thankful for small mercies" - At least they are dropping their rates in 2 steps. My Ford Flexible Saver is currently paying 1.35%. This reduces to 1.25% on 16th June. Then reduces to 1.07% on 3rd July. Could Bowlhead give his score of how many exclamation marks this news deserves?  

As a variable rate account they can change the rate whenever they like, and will tell you when they do. They have a decent reputation and when their rate goes up, everyone gets those those positive changes rather than needing to apply for a new edition of the product. So it stands to reason that when they decide to reduce the rate, it will impact your account until your account is paying their 'going rate'.

Product summary extract:
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Can Ford Money change the interest rate?

Yes - this is a variable rate product so we may increase and decrease  your interest rate.

When we increase your interest rate we will inform you at the earliest opportunity.
When we decrease your interest rate we will give you at least 60 days’ notice of the reduction.

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From that, I would rate your news worthy of zero exclamation marks, as there is no reason to 'exclaim' anything