Newcastle Building Society - Base Rate Tracker Savings account

OCCAM
Forumite Posts: 3
Newbie
This savings account commits to keep its interest rate at 0.7 percentage points below the bank of England Base Rate. However, all is not as it seems. Rather than being a true tracker it is more of a tracker with a "up to 5 working days" lag!
BoE base rate changed last Thursday 3rd August, the interest rate on the account remains the same still as of today 9th August. Tomorrow 10th August will be the 5 working days since the BoE rate change.
A true "tracker" would have changed in concert with the BoE change, with no delay. So, to me this seems just another example of sharp practice from a banking/savings institution.
A true "tracker" would have changed in concert with the BoE change, with no delay. So, to me this seems just another example of sharp practice from a banking/savings institution.
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Comments
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I guess tracker mortgages aren't true trackers either
https://www.nationwide.co.uk/mortgages/bank-of-england-base-rate-changes-and-your-mortgage/The new Bank of England base rate
The latest Bank of England base rate is: 5.25%.
This is an increase of 0.25%, and was announced by the Bank of England (BoE) on 3 August 2023.
From 1 September 2023 our:
- Base Mortgage Rate (BMR) will increase from 6.50% to 6.75%
- Tracker mortgage rates will increase in line with the base rate.
https://www.skipton.co.uk/base-rate-changeIf your Base Rate Tracker was taken out with Skipton Building Society, the new rate will take effect from 17 August 2023.
If your Base Rate Tracker was originally from Scarborough Building Society, the new rate will take effect from 10 August 2023.
If your Base Rate Tracker was originally from Amber Homeloans or North Yorkshire Mortgages, the new rate will take effect from 3 August 2023.
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OCCAM said:So, to me this seems just another example of sharp practice from a banking/savings institution.11
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OCCAM said:This savings account commits to keep its interest rate at 0.7 percentage points below the bank of England Base Rate. However, all is not as it seems. Rather than being a true tracker it is more of a tracker with a "up to 5 working days" lag!BoE base rate changed last Thursday 3rd August, the interest rate on the account remains the same still as of today 9th August. Tomorrow 10th August will be the 5 working days since the BoE rate change.
A true "tracker" would have changed in concert with the BoE change, with no delay. So, to me this seems just another example of sharp practice from a banking/savings institution.2 -
OCCAM said:So, to me this seems just another example of sharp practice from a banking/savings institution.What you lose on the way up, you gain back on the way down.If there was a 25bp increase to the BoE base rate every month for a year, your effective loss for the year would be about 6bp.
N. Hampshire, he/him. Octopus Go elec & Tracker gas / Shell BB / Lyca mobi. Ripple Kirk Hill member.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs.
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 30MWh generated, long-term average 2.6 Os.0 -
Skipton make you wait 14 days on their tracker savings account. I thought 5 days was reasonable. You can be sure though if base rate goes down that they will action it in day 1.0
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LOL, another case of "I'll have a moan because I didn't read the Ts and Cs!9
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OCCAM said:This savings account commits to keep its interest rate at 0.7 percentage points below the bank of England Base Rate. However, all is not as it seems. Rather than being a true tracker it is more of a tracker with a "up to 5 working days" lag!BoE base rate changed last Thursday 3rd August, the interest rate on the account remains the same still as of today 9th August. Tomorrow 10th August will be the 5 working days since the BoE rate change.
A true "tracker" would have changed in concert with the BoE change, with no delay. So, to me this seems just another example of sharp practice from a banking/savings institution.
https://forums.moneysavingexpert.com/discussion/6392978/top-easy-access-acs-ranked-top-of-the-pots-no-chat/p1
As are accounts that are being dropped from that list.
Then not sure how competitive the NBS offering is any more.
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Although not a market leading rate (even after the BR increase is applied) the account has value to me, especially if/when rates go down.
I personally didn't find a 5 working day lag to be too unreasonable.2 -
QrizB said:OCCAM said:So, to me this seems just another example of sharp practice from a banking/savings institution.What you lose on the way up, you gain back on the way down.If there was a 25bp increase to the BoE base rate every month for a year, your effective loss for the year would be about 6bp.0
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OCCAM said:This savings account commits to keep its interest rate at 0.7 percentage points below the bank of England Base Rate. However, all is not as it seems. Rather than being a true tracker it is more of a tracker with a "up to 5 working days" lag!BoE base rate changed last Thursday 3rd August, the interest rate on the account remains the same still as of today 9th August. Tomorrow 10th August will be the 5 working days since the BoE rate change.
A true "tracker" would have changed in concert with the BoE change, with no delay. So, to me this seems just another example of sharp practice from a banking/savings institution.4
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