We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

interest rate increase, but bank did not

bank of england had already announced interest rate increase by 0.25%

but waiting bank to announce, but none happened.

Comments

  • surreysaver
    surreysaver Posts: 5,165 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If its not in the terms and conditions of the account you hold that the interest rate tracks the BoE rate, then there is no reason why it should.
    I consider myself to be a male feminist. Is that allowed?
  • no term and condition.
    but no bank increase interest
  • Linton
    Linton Posts: 18,499 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Why do you believe that the BoE interest rate ahould directly affect interest rates paid by the commercial banks?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Correlation between BOE base and savings/borrowing rates ended some years ago.
  • A_T
    A_T Posts: 975 Forumite
    Part of the Furniture 500 Posts Name Dropper
    I'm shocked
  • coyrls
    coyrls Posts: 2,537 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    bank of england had already announced interest rate increase by 0.25%

    but waiting for posts about savings interest rates, and loads happened.
  • coyrls wrote: »
    bank of england had already announced interest rate increase by 0.25%

    but waiting for posts about savings interest rates, and loads happened.

    no increase in saving interest rate until today!
  • apt
    apt Posts: 3,249 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Not on your side as they say at the Nationwide.
  • You need to remember that your bank sets its own interest rates for the savings accounts it offers. Just because the BoE has increased rates it doesn't mean that your bank will follow suit. You might ask, 'So what is the point in the BoE doing anything when banks can seemingly do what they want anyway?' Good question - answers on a postcard please.

    Banks will often adjust their rates after a BoE rate change but there will almost always be a time lag - presumably whilst they work out what is best for them and their profitability (as if they haven't already done that!). They will also usually increase their borrowing rates first just to increase their margin (albeit temporarily). I also get the feeling that some banks are waiting to see what the competition will do before making their own move.

    Anyway, from what OP says, their bank has now put its savings rates up.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.7K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.8K Work, Benefits & Business
  • 603.3K Mortgages, Homes & Bills
  • 178.2K Life & Family
  • 260.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.