Anyone else noticed that banks don't increase variable savings interest rates on exiting accounts?

Super_Stomper

I have noticed that, whenever banks change their Savings interest rates they REDUCE your interest rates when the rates go down, BUT when the rates go up they keep them as they are and don't let new savers invest in the 'old' account but open a new savings account with the new rates? They also don't tell you when this happens. I'm getting fed up of discovering that my rates have frozen in this way, having to opening up a new account with the higher rate and transferring money across. Doesn't seem fair somehow. :-)

eskbanker

Which banks are you specifically referring to that only reduce variable rate products?

cymruchris

Banks are there to make profits - it's what they do. If they need more money they'll raise their savings rates - if they have enough already - they won't. Some will tell you when rates go up, and there's no need to open a new account - others don't. A combination I suspect of keeping in profit and some archaic systems. As a saver, you've got to keep your ear to the ground to get the best rates. There are hundreds of thousands of people out there that still have their savings in old accounts paying 0.1%.

LeafGreen

On the contrary - recently I have found quite a few where the rate has increased - for example only today I had an email from Kent reliance to say the rate on my easy access account is going up by 0.75%, and that had another increase only last month.  Marcus, Zopa and Coventry have also increased in the last few weeks.

Albermarle

grahamgoo said:

On the contrary - recently I have found quite a few where the rate has increased - for example only today I had an email from Kent reliance to say the rate on my easy access account is going up by 0.75%, and that had another increase only last month.  Marcus, Zopa and Coventry have also increased in the last few weeks.

Ford Money also increase their rates on easy access accounts, without the customer having to do anything.

YBR

I agree that is normally the case, however, my Coventry savings accounts are increasing interest rates without me doing anything, so there are exceptions.

cymruchris

grahamgoo said:

On the contrary - recently I have found quite a few where the rate has increased - for example only today I had an email from Kent reliance to say the rate on my easy access account is going up by 0.75%, and that had another increase only last month.  Marcus, Zopa and Coventry have also increased in the last few weeks.

Agreed - there are a multitude of accounts to choose from where you don't have to keep opening and closing accounts - maybe the OP can refer us to which banks they are using.

masonic

Credit where credit is due, Al Rayan have consistently raised rates to stay at the top of the savings table. Most other variable rate savings providers I have used recently have sent me regular notifications of rate rises, but as these are not top payers, I've no interest in moving any money back to them. I expect Santander's recent table topping account will be stuck at 2.75% though - not that it's a rate worthy of complaint.

ForumUser7

grahamgoo said:

On the contrary - recently I have found quite a few where the rate has increased - for example only today I had an email from Kent reliance to say the rate on my easy access account is going up by 0.75%, and that had another increase only last month.  Marcus, Zopa and Coventry have also increased in the last few weeks.

@grahamgoo is it just their easy access rate increasing do you know please? For some reason the interest rate section of their website does not show that update yet

Krakkkers

Shawbrook just upgrade you when rates go up, Charter don't and you have to open a new account and transfer from one product to another.

LeafGreen

ForumUser7 said:

grahamgoo said:

On the contrary - recently I have found quite a few where the rate has increased - for example only today I had an email from Kent reliance to say the rate on my easy access account is going up by 0.75%, and that had another increase only last month.  Marcus, Zopa and Coventry have also increased in the last few weeks.

@grahamgoo is it just their easy access rate increasing do you know please? For some reason the interest rate section of their website does not show that update yet

@ForumUser7

 I’m not sure about other accounts.  They just sent me an email about my account. The increase is effective from 18th Nov so hasn’t taken effect yet, maybe rates on their website will increase then.