Interest Rate Cut

CopperPlate_2

Really disappointed by Smile - cutting their ISA by 0.35 and their savings by 0.25. I think they only cut their mortgage rate by something like 0.16 or 0.2% as well, so plenty money to be made out of this rate cut for them.

Now having second thoughts about their 'ethics' - why go beyond what the BoE actually reduced rates from, if it's not just a case of making extra out of savers.

Looking at Cahoot for my savings now, and maybe even my current account...

CP

Walletwatch

Isn't Cahoot a part of Abbey? (or at least was) Wonder what is the impact of this Grupo Santander takeover on Cahoot?

deemy2004

Yeh, I mentioned this in another post.

Perhaps its something to do with the consquences of the takeover than anything else.

CopperPlate_2

Yeah, but I'm down to now thinking, stuff ethics. If I'm going to have to go with a money grabbing bank, I might as well take my pick and get the one that offers me the most interest and benefits

CP

deemy2004

Its nothing to do with the banks but rather with the moneymarket rates which have fallen more than the rate cut.. Immediatlyt after the cut 12 month LIBOR bottomed out at 4.42%, but are now back up at 4.52%.

Remember when rates rose ? They went up nearly 1% BEFORE the first BOE rate rise !

For the savings rates to rise, the money market rates must rise first, for the money market rates to rise there must be two underlying mis-calulations.. Namely that inflation is likely to be higher than the consensus forecasts, and economic growth is likely to be higher than the consensus forecasts.

CopperPlate_2

Oh dear Deemy, you're confusing me with the science of gobbledygookspeak .

All I know is that, until mid 2001, Smile used to track the BoE rate exactly for their Cash ISA, and about .25% below for their Savings account. Mid 2001, that changed to .25 for both, then widened to .5% again a few months later. The last time rates were the same, in mid 2001, the savings rates for both accounts were at least .5% higher than they are now currently.

I don't like sleight of hand and what hacks me off is that this is from a bank that presents itself as being ethical and 'for the consumer' (as if you'd believe any of that rubbish from a bank) on one hand, yet decreases savings rates by a greater percentage than the majority of other institutions.

CP

Fatboy_NSS

Walletwatch wrote:

Isn't Cahoot a part of Abbey? (or at least was) Wonder what is the impact of this Grupo Santander takeover on Cahoot?

IIRC the official line at the time of the merger was that cahoot will be kept as is, with no change to name or logo. It will also continue to be the part of the group where new innovations are tried out before being launched elsewhere.

[Deleted User]

Deleted_User wrote:

According to another thread, rumoured to be going down from 5.35% to 4.90%.

Confirmed by a call to Abbey Customer Services on 0845 6000 181, from 1/9.

[Deleted User]

Walshy wrote:

Keep an eye on this page for the latest rate cuts:

www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=402770&in_page_id=7

Cahoot savings rate reducing from 5.10% to 4.85% from 23/8 according to this. At least it's only the same reduction as BOE.

[Deleted User]

Has anyone heard about any rate change on the Halifax Web saver account?