Increasing rates on existing easy access accounts?

etwallace

When rates are rising, I'm asking whether banks automatically increase the rate on existing customer's easy access accounts? I've got the impression that if you already have an easy acc savings account and you want a higher rate then you have to manually switch to another account. n other words the banks appear to automatically reduce rates on easy access accounts but they won't automatically increase them. Is that the case?

Albermarle

They raise their rates if they are looking for more funds/customers. If they are not than they will leave them as they are .
Normally the only way to get the best rates on any savings accounts , is to keep switching accounts and become a so called rate tart.
The question is at what point does it become more effort than its worth to gain 0.05 %.

kuratowski

To get the leading rates, you do need to shop around and switch.

When the base rate rises, some banks do sometimes pass on the rate increase to existing customers, but not always, and not always the full amount. 

ranciduk

I wouldn’t worry

the rates will probably  rise by about a quarter of a percent over the next ten years

colsten

Some increase the rates on some of their accounts sometimes. Others never increase them on any of their accounts ever. There are no hard and fast rules. You have to keep an eye on things yourself.

Baoser

When I was younger I used to remember interest rates rise and fall with accounts. They used to be tiered as well, so the more you save, you get to reach the better rate.

I find the trend these days is that the interest rates stay the same on the account you open. The bank will release a new account with a very similar sounding name with the higher rates. If you don't pay attention, you think you're getting the better rate. Some banks like Santander or the Post Office, keep the account name the same but then have an issue number. You look up the account thinking you're on the higher rate and not realising you're on an earlier issue of the account and getting lower interest. I find these practices very dodgy and purposely designed to confuse the less astute.

Type_45

Why not invest in bonds and actually earn some proper interest?

eskbanker

Type_45 said:

Why not invest in bonds and actually earn some proper interest?

What do you actually mean by 'bonds' (a hugely ambiguous term encompassing both savings and investment products), and which ones do you believe are suited to those specifically looking for easy-access savings accounts (i.e. the subject of this thread)?

RG2015

Type_45 said:

Why not invest in bonds and actually earn some proper interest?

Are you able to give any examples of bonds that earn "some proper" interest?

Albermarle

RG2015 said:

Type_45 said:

Why not invest in bonds and actually earn some proper interest?

Are you able to give any examples of bonds that earn "some proper" interest?

Maybe they mean those bonds that keep cropping up on internet searches and pages . Guaranteed 5% etc 

RG2015

Albermarle said:

RG2015 said:

Type_45 said:

Why not invest in bonds and actually earn some proper interest?

Are you able to give any examples of bonds that earn "some proper" interest?

Maybe they mean those bonds that keep cropping up on internet searches and pages . Guaranteed 5% etc 

In other words, a comment relating to scams?