Savings rate cut in October

catfish67

I have seen a couple of banks/building societies that have already announced a cut in their interest rates to come into effect in October 2025. This is in addition to their rate cuts in response to the most recent BoE rate cut.

Does anyone have an idea what is behind this?

dali21

Which banks/building societies please?

singhini

catfish67 said:

I have seen a couple of banks/building societies that have already announced a cut in their interest rates to come into effect in October 2025. This is in addition to their rate cuts in response to the most recent BoE rate cut.

Does anyone have an idea what is behind this?

Any particular account? (unusual to cut all rates across all accounts in one sweeping go).

My understanding is the banks are not solely reliant on the BoE. Their possibly anticipating fluctuations in the markets and anticipate customers will probably not bother switching. 

From personal experience, the bank of Mum & Dad have also tightened up their offerings unfortunately. 

Mark_d

Bank interest rates are usually linked with bond yields

Albermarle

Another factor can be how much money the bank/BS actually need to attract.
For example if a BS sees a drop in demand for their mortgages, they may reduce the competitiveness of their savings accounts as they do not need the same inflow of funds to lend out again.

SH88SH88

dali21 said:

Which banks/building societies please?

HSBC appear to be cutting some rates from 20-10-2025 ... online bonus saver plus others ....

the_seer

YBS rate cuts don't come into effect until 2-Oct, but these are due to the 7-Aug BOE rate change. They took than 3.5 weeks to announce them.

Ch1ll1Phlakes

catfish67 said:

I have seen a couple of banks/building societies that have already announced a cut in their interest rates to come into effect in October 2025. This is in addition to their rate cuts in response to the most recent BoE rate cut.

Does anyone have an idea what is behind this?

Most of these cuts are from the August base rate cut and just have long notice periods (some are two months) or the banks in questions took a while to make a decisions like YBS mentioned above