Nationwide after BoE Interest Rate rise
Comments
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polyphonic99 wrote: »........Nationwide is not passing on last week's Bank of England 0.25% rate rise in full to savers in the first sign that big financial institutions will use the base rate to increase profit margins..........
Despite the separation of investment and retail banking, the implications have still not been understood by many. If the penny hasn't dropped yet, then this Bank of England article from 2014 needs to be read and understood. https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf
In the good old days banks could take your savings and put them in the pot with all their investment deposits, then finance borrowers at various levels of risk. Now with the government guaranteeing your savings, the government won't allow the banks to take such risk. The banks therefore, are not desperate to get their hands on your cash savings..._0 -
polyphonic99 wrote: »Thanks Nationwide, I will be moving any remaining money in my accounts with you just as soon as your competitors raise their rates by 0.25%, which for instance Skipton has already promised to do.Which of those seven published promises are you claiming they've broken?
So whilst they haven't promised to pay higher rates of interest than other institutions, it does chafe a bit hearing them extolling the virtues of mutuality when their sights are actually set on being indistinguishable from the ravening banks. (in part by diverting profit towards generously incentivising new current account custom)"In the future, everyone will be rich for 15 minutes"0 -
Which of those seven published promises are you claiming they've broken?
why, none at all that i know of. did i imply otherwise? apologies i'm sure. the only worry i have is when they promise "our only focus is you" that this is probably much what a shark thinks on spying its lunch swimming by.
but this is the way of the world and i dare say that nothing short of genetic engineering is likely to change it anytime soon.0 -
One day the penny will finally drop that there is no such things as loyalty for ANYTHING.
Banks/B Soc rates, all insurance, broadband, mobiles, tv packages, etc.,etc.
Move, move move.0 -
I keep a Flexdirect account open to take advantage of the regular saver.
The regular saver pays 5% [(in common with those of the banks with the bubbly guzzling shareholders:) ) - I did enjoy that advert - can't say the same for the current batch!
To be completely fair to Nationwide, it does also pay 1% on the balance up to £2500 in the Flexdirect account which M&S/HBC/First Direct don't.
I've been a member for over twenty years - the "loyalty" saver rate is nothing special.0 -
Malchester wrote: »Have become increasingly disenchanted with Nationwide over recent years now only have Flex and loyalty single access ISA with them. ISA will be moving soon when things settle. Have been with them over 30 years but they have no loyalty to me so why should I have any to them. Even their loyalty rates are appalling compared to othe financial instituions0
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polyphonic99 wrote: »
Thanks Nationwide, I will be moving any remaining money in my accounts with you just as soon as your competitors raise their rates by 0.25%, which for instance Skipton has already promised to do.
Although Skipton has promised to raise its 'on-sale' rates by 0.25%, not all of its rates. Nice clever use of language.
So if you're an existing saver with them, what does that mean to you?Everyone needs something to believe in.
I believe I need another beer.0 -
Shame a 5.25% regular saver would have been good :-)
The accounts I have with Nationwide are such good value I wouldn't expect them to increase the rate.
Alex.0 -
Bernard_Coleslaw wrote: »Although Skipton has promised to raise its 'on-sale' rates by 0.25%, not all of its rates. Nice clever use of language.
So if you're an existing saver with them, what does that mean to you?
If you have a variable rate account then it presumably means that they'd prefer to get everyone onto their current product range rather than having to support old ones ad infinitum, so they'd naturally encourage people to move by leaving obsolete accounts on unadjusted rates....0 -
The great majority of the Nationwide's members are savers and they have been shafting them for years. Got to have a good margin to keep Board and senior management pay rocketing upwards. Coventry used to be better, but unfortunately they've followed suit in recent years.0
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