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

isasmurf

Krakkkers said:

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.

Charter do increase rates on previous issues
https://s3-eu-west-1.amazonaws.com/pdf.chartersavingsbank.co.uk/01502_savings_interest_summary.pdf

Krakkkers

But not for me apparently? i have to cancel one and start another.

Ifts

Super_Stomper said:

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. :-)

Here are some that I know of that do raise the rate for you, so it saves you the hassle of opening a new account:

RCI - raise the rate automatically.

Aldermore - raise the rate for existing customers in line with their latest offer. 

Shawbrook - also let you re-designate old account to the new issue when there is a rate increase, secure message them asking to change account to latest issue.

Cynergy Bank - raise the rate automatically (which is great as they used to bring out a new account every week or so a little while back which was a right headache to keep up with!).

Andy7856

Have noticed they increase but not always by the same amount.  Ie base rate up 0.75%, Coventry BS goes up 0.5%.

JGal

Tesco don't tend to increase, rather release new accounts. 

masonic

Well this seems to have turned into a thread where most people notice that banks do increase variable savings interest rates.

isasmurf

JGal said:

Tesco don't tend to increase, rather release new accounts. 

The Tesco model was what the regulator was going to get every bank to adopt with their 'single easy access rate' regulation as an answer to the so called loyalty penalty. Banks would have had to have the same rate across all their easy access accounts, but would be able to offer a 12 month introductory bonus to compete for new customers.

Covid came along and fortunately caused them to abandon their absurd plan which would have done nothing to address people languishing on low rates. 

gabiieve

Marcus has always increased my interest without my interference. Quite happy with them

Rudyson

What has happened in the last 12 months or so, is that at least three banks which used to bring out new issues, are now upgrading existing issues to new rates: Kent Reliance, Cynergy and Oaknorth.

SuzzleBumpkin

Super_Stomper said:

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. :-)

Al Rayan, BLME, and OakNorth have done frequent increases in rates as they’ve risen. I’m really impressed with how responsive they’ve been.