Can MSE put pressure on banks to PASS ON the interest rates to those with Savings Accounts?

h1n1

For too long, banks have been paying much below the BoE base-rate when it comes to interest for those with savings accounts. When the base-rate is increased, they almost instantly increase APR!
Savers are getting ripped off again... please can MSE put pressure on banks, like Barclay's to increase saving interest rates on par, or not far from, the BoE base-rate !  

HappyHarry

Banks have never really paid above BOE. Banks make their profit from the difference between lending and borrowing rates. Traditionally, money they lend is at a higher interest rate than the BOE rate and the money they borrow (e.g. savings accounts) is paid at a rate lower than BOE rate.

If you are not receiving the rate you want, then move your funds elsewhere. The banks that want your money will offer you higher rates in order to get it.

dunstonh

For too long, banks have been paying much below the BoE base-rate when it comes to interest for those with savings accounts. 

The banks have had nearly 15 years of much reduced net interest margin.   The margin always increases as interest rates rises.   

Savers are getting ripped off again.

No they are not.

 please can MSE put pressure on banks, like Barclay's to increase saving interest rates on par, or not far from, the BoE base-rate ! 

I am sure when more bank branches have closed and everything is done online, then the "high street" banks can reduce the net interest margin a little.

Archerychick

Banks make their money from the difference so they’re not going to pay over it. I think you can currently get savings accounts pretty close to BOE base rate so unsure whether it’s an issue with your particular bank & if so, move your money.

cymruchris

What rates are you getting compared to the current base rate?

Sg28

h1n1 said:

For too long, banks have been paying much below the BoE base-rate when it comes to interest for those with savings accounts. When the base-rate is increased, they almost instantly increase APR!
Savers are getting ripped off again... please can MSE put pressure on banks, like Barclay's to increase saving interest rates on par, or not far from, the BoE base-rate !  

If Barclays aren't paying high enough rates move to a bank that does.  

Plenty 5%+

https://forums.moneysavingexpert.com/discussion/comment/79538594/#Comment_79538594

Bridlington1

h1n1 said:

For too long, banks have been paying much below the BoE base-rate when it comes to interest for those with savings accounts. When the base-rate is increased, they almost instantly increase APR!
Savers are getting ripped off again... please can MSE put pressure on banks, like Barclay's to increase saving interest rates on par, or not far from, the BoE base-rate !  

Why should MSE put pressure on banks to increase savings interest rates? You're the one who chooses where you keep your savings, nobody forces you to stay with Barclays and as already mentioned there are many accounts on offer that pay 5%+. If you're not happy with the rate of interest you're currently getting on your savings then there are a couple of options:

1. Move your money to a better paying account. It's not difficult, just open a higher paying account and move your money into it.
2. If you can't be bothered to do the above then it can't be that much of an issue to you can it? Otherwise you'd be prepared to take your money elsewhere so stop moaning. It's your own fault if you choose to keep your money in a low paying account when there are plenty of better paying alternatives available.

Savers are not getting ripped off. Those who actively look for better savings rates and are prepared to move their money every now and then earn a higher rate of interest than those who can't be bothered to review their savings options regularly. This seems fair enough to me.

wmb194

MSE’s always exhorting people to ditch and switch. The likes of Barclays have never been known for their amazing deposit rates but if you don’t already have it have a look at Barclays’ 5% on up to £5k Rainy Day Saver.

h1n1

Bridlington1 said:

h1n1 said:

For too long, banks have been paying much below the BoE base-rate when it comes to interest for those with savings accounts. When the base-rate is increased, they almost instantly increase APR!
Savers are getting ripped off again... please can MSE put pressure on banks, like Barclay's to increase saving interest rates on par, or not far from, the BoE base-rate !  

Why should MSE put pressure on banks to increase savings interest rates? You're the one who chooses where you keep your savings, nobody forces you to stay with Barclays and as already mentioned there are many accounts on offer that pay 5%+. If you're not happy with the rate of interest you're currently getting on your savings then there are a couple of options:

1. Move your money to a better paying account. It's not difficult, just open a higher paying account and move your money into it.
2. If you can't be bothered to do the above then it can't be that much of an issue to you can it? Otherwise you'd be prepared to take your money elsewhere so stop moaning. It's your own fault if you choose to keep your money in a low paying account when there are plenty of better paying alternatives available.

Savers are not getting ripped off. Those who actively look for better savings rates and are prepared to move their money every now and then earn a higher rate of interest than those who can't be bothered to review their savings options regularly. This seems fair enough to me.

Its not that I cant be bothered, but have much more over the 85K safety net; Barclays is much more stable than Virgin Money - if I were to transfer I'd have to transfer it all there. However, I am reluctant too incase they fail. I know Barclays could fail but they seem in a much stronger position than Virgin Money, who BTW are offering 5.25% saving rates ... if they can do it, I can't see why Barclays can't better their offer at the very least !! 

RG2015

h1n1 said:

Bridlington1 said:

h1n1 said:

For too long, banks have been paying much below the BoE base-rate when it comes to interest for those with savings accounts. When the base-rate is increased, they almost instantly increase APR!
Savers are getting ripped off again... please can MSE put pressure on banks, like Barclay's to increase saving interest rates on par, or not far from, the BoE base-rate !  

Why should MSE put pressure on banks to increase savings interest rates? You're the one who chooses where you keep your savings, nobody forces you to stay with Barclays and as already mentioned there are many accounts on offer that pay 5%+. If you're not happy with the rate of interest you're currently getting on your savings then there are a couple of options:

1. Move your money to a better paying account. It's not difficult, just open a higher paying account and move your money into it.
2. If you can't be bothered to do the above then it can't be that much of an issue to you can it? Otherwise you'd be prepared to take your money elsewhere so stop moaning. It's your own fault if you choose to keep your money in a low paying account when there are plenty of better paying alternatives available.

Savers are not getting ripped off. Those who actively look for better savings rates and are prepared to move their money every now and then earn a higher rate of interest than those who can't be bothered to review their savings options regularly. This seems fair enough to me.

Its not that I cant be bothered, but have much more over the 85K safety net; Barclays is much more stable than Virgin Money - if I were to transfer I'd have to transfer it all there. However, I am reluctant too incase they fail. I know Barclays could fail but they seem in a much stronger position than Virgin Money, who BTW are offering 5.25% saving rates ... if they can do it, I can't see why Barclays can't better their offer at the very least !! 

You say Barclays is much more stable than Virgin Money. I am not sure that I understand what you mean, but let's say that they are more stable because they are more profitable.

Perhaps they are more profitable because savers like you keep more then £85k with them at low savings rates.

subjecttocontract

Following your post I checked my savings. I have over 60% (£400K) earning over 5%. I consider that to be OK when base rates are 5.25%.