Base rates down 0.25% to 5.5%

adamtango

I have the Sainsburys online saver , am i correct in saying the net rate has gone from 5.5% to 5% ?

If so this is a 1/2% decreased, and i might have to considor moving my savings elsewhere.

Thanks Adam

bristolleedsfan

adamtango wrote: »

I have the Sainsburys online saver , am i correct in saying the net rate has gone from 5.5% to 5% ?

If so this is a 1/2% decreased, and i might have to considor moving my savings elsewhere.

Thanks Adam

sainsburys rate hasnt changed yet, its 6.25% gross -- 5% netto

http://www.sainsburysbank.co.uk/savings/sav_internetsaver_is_skip.shtml?source=NETHMPAGISAVMAIN0001

The_Fiddler_2

Does anyone know what rate changes have taken place or are about to take place?

bristolleedsfan

The_Fiddler wrote: »

Does anyone know what rate changes have taken place or are about to take place?

national savings direct savings isa has been reduced by 0.25% immediately.

nationwide and halifax are reducing morgage rates by 0.25% from january 1st, so expect savings rates to be "adjusted" downwards on the same date.

MiserlyMartin

baby_boomer wrote: »

All part of the "game", Kazza. No need for major players to get worked up about it since you beat the banks out of sight and would suffer if the "game" was more constrained by regulations.

Nice for those locked into 6.7% - 7% Fixed rate bonds and 7.5% Fixed Rate Regular Savers .

Very nice. I was convinced the next move would be up if any, due to the inflationary pressures. Looks like the MPC are more interested in stopping a house price crash. I wonder how long it will be before they have to write another letter to Gordon Clown?

jetfighter

Typical! Just as I'm in the process of transferring my ISA and savings account to Martin's "top picks" - I bet they'll both cut their rates too, right before the deal is done. I always have the most impeccable timing with these things!

Our mortgage completion date with Northern Rock was the very same day everything went wrong for them, delaying our funds! :rolleyes:

I should learn to stay away...

purch

Meanwhile, in the real world, mortgage (tracker) rates are more a function of LIBOR than BOE base rates

Correct...........and the front month Short Sterling contract (ie. 3 month Libor ) is stioll trading at around 93.46 ...........which indicates 6.54%

So much for the BOE base rate

In the REAL WORLD Banks, Building Societies and other lenders are going to struggle to lower Mortgage rates and keep them there

Secret_Wookie_2

Where are the people who are talking about banks backdating interest getting that Idea from? I have never heard of a bank back dating interest because base rate has gone down. You get the rate as stated on that day everyday day until it changes.

Any changes in rates that a bank wishes to make must be made within 30 days of a base rate change under the banking code regulations, most will take 30 days to reduce rates and do it at the same time as mortgage rates, any who don't can be accused of gapping and disadvantaging savers over borrowers, but we dont have any indication that anyone has done this so far.

Ultimatley though banks can offer any rate they wish on an account at anytime, they only have to personally notify customers if they increase their margins by more than 0.25% in anyone go or by more than 0.50% in a rolling 12 month period. Base rate changes often trigger these rulings hence why rates mostly change up of down by the change in best rate so that the margin stays the same.

Ultimatley if you want the best rates you need to keep an eye on what happends to your accounts when base rate changes and switch if you think you can get a better deal.

Paul_Herring

Secret_Wookie_2 wrote: »

Any changes in rates that a bank wishes to make must be made within 30 days of a base rate change under the banking code regulations, most will take 30 days to reduce rates and do it at the same time as mortgage rates, any who don't can be accused of gapping and disadvantaging savers over borrowers, but we dont have any indication that anyone has done this so far.

Gapping happens. From a saver's point of view, a decrease in the BOE can be applied straight away (or even retro-actively.) An increase in BOE happens at the end of the month, if at all. Similar situation with mortgages.

Ultimatley though banks can offer any rate they wish on an account at anytime, they only have to personally notify customers if they increase their margins by more than 0.25% in anyone go or by more than 0.50% in a rolling 12 month period.

Cite please? I can see nothing like this in the Banking Code. (http://www.bankingcode.org.uk/pdfdocs/BANKING%20CODE.pdf)

thor

chesky369 wrote: »

Well, let's not be too grouchy - we've had pretty good rate rises for the past 18 months or so. Look at it this way - it's going to get more 'interesting' now, seeing who brings their rates down and by how much - our savings will be whizzing around from account to account, chasing the goodies.

We may have had a handful of rise over the last year and a half but for the majority of this decade cuts have dominated and savers are still suffering from where they were a few years ago. The gap between mortgage and saving rates must be way larger than it used to be.