Northern Rock to lower savings rates ?

notis7

It makes sense for them to lower rates - as to not provoke competing banks about the "Unfair" advantage.

Reestit_Mutton

dougz wrote: »

Well there is absolutely no time limit mentioned on their savings front page selling the product, or via the hidden link to the treasury 9 Oct PR

Well, anyone with access to their funds is free to move them and anyone with tied funds would seem to be covered for the entire duration of their tie-in regardless of when/if HMG withdraws its guarantee (Treasury announcement)

IMO, no-one should have to be compensated for the cost of moving funds - such is the nature of the savings industry these days that customers should expect to have to periodically move their funds anyway if they are to avoid the scourge of diminishing returns.

RM

dougz_2

Reestit_Mutton wrote: »

customers should expect to have to periodically move their funds anyway if they are to avoid the scourge of diminishing returns.
RM

Obviously, so long as the rate was not guaranteed, but what I was not talking about that reason, I was talking about unexpected diminishing terms of protection, customers should not accept that.

As an aside, this bit is amusing me "Northern Rock plc will pay an appropriate fee for the extension of the arrangements, which is designed to ensure it does not receive a commercial advantage." Who pays who this fee now?!

thor

Beate wrote: »

The way I have heard it in the news is that Northern Rock will concentrate on the savings market now instead of the mortgage market which should mean they are going to increase savings rates rather than decrease them.

Well it's about time that savers were looked after rather than borrowers(espcially at NR). I don't care if the government helping them is unfair since the all these financial institutions have been acting like a cartel in widening their savings and lendings ratios. Serves them right I say.

Meltdown_2

thor wrote: »

all these financial institutions have been acting like a cartel in widening their savings and lendings ratios.

Surely that would be illegal ...

thor

Meltdown wrote: »

Surely that would be illegal ...

Does not matter unless they are caught

poppy10_2

Meltdown wrote: »

Surely that would be illegal ...

It would be illgeal if they all got together beforehand and discussed it. Instead once bank widens the gap between savings and borrowing rates, another will go a bit further, and they carry on leapfrogging their way down.