Sporadic saving rate increases

WOTSWOT

In contrast with the recent trend of a slow drift downwards in savings rates, there are several recent instances which buck the trend. I see Hodge have just increased their easy access rate up to 4.21 after dropping from 4.4 to 4.15 last month. Oak North have just upped the rate on their 95 day tracker from 4.51to 4.54. Cahoot  simple is back at 4.4 again and Marcus have just come in with a chart topping 1 year bond at 4.55. First save recently upped their 1 year rate to 4.5 for a very short time.

Are these just minor competitive adjustments or an early sign of a change in the overall trend?

InvesterJones

WOTSWOT said:

In contrast with the recent trend of a slow drift downwards in savings rates, there are several recent instances which buck the trend. I see Hodge have just increased their easy access rate up to 4.21 after dropping from 4.4 to 4.15 last month. Oak North have just upped the rate on their 95 day tracker from 4.51to 4.54. Cahoot  simple is back at 4.4 again and Marcus have just come in with a chart topping 1 year bond at 4.55. First save recently upped their 1 year rate to 4.5 for a very short time.

Are these just minor competitive adjustments or an early sign of a change in the overall trend?

We'll let you know in a month or two  

There was a report that mortgage costs based on swap rates were also slightly higher so it does look like rates are a little higher at the moment.

Albermarle

These savings providers will lend out the money they get coming from savings.
If their lending business slows down, or speeds up, they will adjust their savings rates to try and attract less or more money.
Plus of course they are looking at general trends in interest rates as well.

MeteredOut

Complete conjecture on my part, but I think banks were previously expecting a further BoE cut this year, and reduced their rates early in the past couple of months to reflect that, but now feel that the rate will be kept the same, so can nudge them back up a little.

Kim_13

WOTSWOT said:

In contrast with the recent trend of a slow drift downwards in savings rates, there are several recent instances which buck the trend. I see Hodge have just increased their easy access rate up to 4.21 after dropping from 4.4 to 4.15 last month. Oak North have just upped the rate on their 95 day tracker from 4.51to 4.54. Cahoot  simple is back at 4.4 again and Marcus have just come in with a chart topping 1 year bond at 4.55. First save recently upped their 1 year rate to 4.5 for a very short time.

Are these just minor competitive adjustments or an early sign of a change in the overall trend?

I have Issue 10 of the Oak North Base Rate Tracker. Will my rate increase from 4.31% or is this a new issue and they are not increasing the old? If so, are holders of one issue allowed to apply for the other?

WOTSWOT

Kim_13 said:

WOTSWOT said:

In contrast with the recent trend of a slow drift downwards in savings rates, there are several recent instances which buck the trend. I see Hodge have just increased their easy access rate up to 4.21 after dropping from 4.4 to 4.15 last month. Oak North have just upped the rate on their 95 day tracker from 4.51to 4.54. Cahoot  simple is back at 4.4 again and Marcus have just come in with a chart topping 1 year bond at 4.55. First save recently upped their 1 year rate to 4.5 for a very short time.

Are these just minor competitive adjustments or an early sign of a change in the overall trend?

I have Issue 10 of the Oak North Base Rate Tracker. Will my rate increase from 4.31% or is this a new issue and they are not increasing the old? If so, are holders of one issue allowed to apply for the other?

The latest Issue 14 pays 4.54%. The previous Issue 13 still pays 4.51%. To get the higher rate you have to apply for the new issue. You can hold as many Issues as you wish. I fund a new issue if the rate uplift is significant and give notice to close earlier issues. I already have funds in Issue 13, but the uplift in Issue 14 is not very significant for me so I am not applying for it.

Scot_39

Hope some others follow - as some of the challangers definitely dropped aggressively recently - more than one base rate step anyway.

Only reason I opened the Cahoot 12 is one of the larger "challangers" dropped their rates 0.35%/0.4% to 3.65%.  So just upgraded that to issue 13.  So now on 4.4 not 4.2. 0.75% difference

Obviously a bit like Santander - it pays to watch them closely.

Even average 2 yr and 5 yr mortgage fixes have crept up a tiny amout (0.0x%) in the last surveys.

So the brakes might have been applied - at least temporarily - on the rates slide over last year.

Well know more after the next budget becomes clear which way gilts and BofE rates go longer term.

Albermarle

Scot_39 said:

Hope some others follow - as some of the challangers definitely dropped aggressively recently - more than one base rate step anyway.

Only reason I opened the Cahoot 12 is one of the larger "challangers" dropped their rates 0.35%/0.4% to 3.65%.  So just upgraded that to issue 13.  So now on 4.4 not 4.2. 0.75% difference

Obviously a bit like Santander - it pays to watch them closely.

Even average 2 yr and 5 yr mortgage fixes have crept up a tiny amout (0.0x%) in the last surveys.

So the brakes might have been applied - at least temporarily - on the rates slide over last year.

Well know more after the next budget becomes clear which way gilts and BofE rates go longer term.

IIRC, after the last budget the gilt yields hardly twitched, and could well be the same again.

Kim_13

In case it is useful I had an email from OakNorth advertising the new issue and containing the following: 

Already have a Notice Base Rate Tracker with us?
You can move funds into our new issue without serving the notice period. Simply open a new Base Rate Tracker account and transfer your funds using our app or online banking.

I have just successfully moved the balance of my Issue 10 into Issue 14 with no notice required.