Savings rates going down!

[Deleted User]

At a time where the BoE is continually putting up rates, and so are mortgage providers, why are bank savings rates now going down? I opened a one year fixed bond with Cynergy bank at 6.04% three weeks ago. Luckily it has locked at that rate, but I did want to open one for my husband a week later, and it had gone down to 6%. I've just looked again, and it has gone down to 5.95%! I also notice that the RBS fixed rate which was 5.5% has now gone down to 5.38%. What is going on?

Albermarle

Fixed rates are based on projections of where interest rates will be during the fix term period.
A few weeks ago it was assumed that the current BofE rate of 5.25% would increase by 0.25% in September, and then another one or two rises after that. Although the September increase looks nailed on, there is now some uncertainty about whether there will be any further increases. Hence fix rates have come down a bit.

housebuyer143

Some companies put the rates higher with the aim of getting a set number of deposits. Once they get that they have no appetite for being the best in the market. Or maybe the best market rate has been withdrawn and therefore they feel less pressure to stay high. 

Bigwheels1111

Same as last November, Boe puts them up, Banks offer less.

Thats life