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  • FIRST POST
    • MSE Megan F
    • By MSE Megan F 7th Aug 18, 5:57 PM
    • 349Posts
    • 172Thanks
    MSE Megan F
    Nationwide and TSB won't pass full interest rate rise on to savers - MSE News
    • #1
    • 7th Aug 18, 5:57 PM
    Nationwide and TSB won't pass full interest rate rise on to savers - MSE News 7th Aug 18 at 5:57 PM
    Nationwide and TSB have confirmed they won't pass on the full interest rate rise to most savers - despite doing so for mortgage customers...
    Read the full story:
    'Nationwide and TSB won't pass full interest rate rise on to savers'

    Click reply below to discuss. If you havenít already, join the forum to reply.
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Page 1
    • eskbanker
    • By eskbanker 7th Aug 18, 6:02 PM
    • 7,859 Posts
    • 8,691 Thanks
    eskbanker
    • #2
    • 7th Aug 18, 6:02 PM
    • #2
    • 7th Aug 18, 6:02 PM
    For anyone wishing to read, or contribute to, the existing thread discussing this (Nationwide only when started), it's at: https://forums.moneysavingexpert.com/showthread.php?t=5878602
    • robin58
    • By robin58 7th Aug 18, 6:05 PM
    • 2,549 Posts
    • 2,975 Thanks
    robin58
    • #3
    • 7th Aug 18, 6:05 PM
    • #3
    • 7th Aug 18, 6:05 PM
    And banks wonder they are hated!
    The more I live, the more I learn.
    The more I learn, the more I grow.
    The more I grow, the more I see.
    The more I see, the more I know.
    The more I know, the more I see,
    How little I know.!!
    • surreysaver
    • By surreysaver 7th Aug 18, 6:35 PM
    • 2,519 Posts
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    surreysaver
    • #4
    • 7th Aug 18, 6:35 PM
    • #4
    • 7th Aug 18, 6:35 PM
    Its 0.25%. 0.25% of s0d all is s0d all. Is there any point in worrying about it?
    I consider myself to be a male feminist. Is that allowed?
    • Herbalus
    • By Herbalus 7th Aug 18, 10:31 PM
    • 2,105 Posts
    • 1,741 Thanks
    Herbalus
    • #5
    • 7th Aug 18, 10:31 PM
    • #5
    • 7th Aug 18, 10:31 PM
    And banks wonder they are hated!
    Originally posted by robin58
    I don't hate them. They don't owe me anything. I just don't use the ones with poor value.
    • bristolleedsfan
    • By bristolleedsfan 7th Aug 18, 11:08 PM
    • 7,531 Posts
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    bristolleedsfan
    • #6
    • 7th Aug 18, 11:08 PM
    • #6
    • 7th Aug 18, 11:08 PM
    If my memory serves me correct many years ago when Base Rates regularly increased by 0.50%, Savings rates tended to go up mostly by 0.25%
    Often what I dont say is more significant than what i do say ........
    • Thrugelmir
    • By Thrugelmir 7th Aug 18, 11:08 PM
    • 59,517 Posts
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    Thrugelmir
    • #7
    • 7th Aug 18, 11:08 PM
    • #7
    • 7th Aug 18, 11:08 PM
    And banks wonder they are hated!
    Originally posted by robin58
    People still use them though........
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • robin58
    • By robin58 7th Aug 18, 11:15 PM
    • 2,549 Posts
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    robin58
    • #8
    • 7th Aug 18, 11:15 PM
    • #8
    • 7th Aug 18, 11:15 PM
    I don't hate them. They don't owe me anything. I just don't use the ones with poor value.
    Originally posted by Herbalus
    So do I but the public perception is they hate them.
    The more I live, the more I learn.
    The more I learn, the more I grow.
    The more I grow, the more I see.
    The more I see, the more I know.
    The more I know, the more I see,
    How little I know.!!
    • robin58
    • By robin58 7th Aug 18, 11:17 PM
    • 2,549 Posts
    • 2,975 Thanks
    robin58
    • #9
    • 7th Aug 18, 11:17 PM
    • #9
    • 7th Aug 18, 11:17 PM
    People still use them though........
    Originally posted by Thrugelmir
    Well try and get paid with cash by the company you work at nowadays....
    The more I live, the more I learn.
    The more I learn, the more I grow.
    The more I grow, the more I see.
    The more I see, the more I know.
    The more I know, the more I see,
    How little I know.!!
    • eskbanker
    • By eskbanker 8th Aug 18, 1:21 AM
    • 7,859 Posts
    • 8,691 Thanks
    eskbanker
    So do I but the public perception is they hate them.
    Originally posted by robin58
    How fortunate we are to have someone on here who can speak on behalf of the entire population....
    • msallen
    • By msallen 8th Aug 18, 4:32 AM
    • 865 Posts
    • 959 Thanks
    msallen
    So do I but the public perception is they hate them.
    Originally posted by robin58
    So the rest of the public hates them but you don't?
    • Uxb
    • By Uxb 8th Aug 18, 6:38 AM
    • 1,105 Posts
    • 1,188 Thanks
    Uxb
    If my memory serves me correct many years ago when Base Rates regularly increased by 0.50%, Savings rates tended to go up mostly by 0.25%
    Originally posted by bristolleedsfan
    Ah yes but those like you and me with long memories are not considered "relevant" anymore.
    Even further back were the days when the BofE changed rates and some weeks later the Building Societies Association would announce what their new rate would be and ALL the societies then changed it to the agreed value on the same day: Competition? zero.
    • bristolleedsfan
    • By bristolleedsfan 8th Aug 18, 7:12 AM
    • 7,531 Posts
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    bristolleedsfan
    .
    Even further back were the days when the BofE changed rates and some weeks later the Building Societies Association would announce what their new rate would be and ALL the societies then changed it to the agreed value on the same day: Competition? zero.
    Originally posted by Uxb

    Yes operated like a Cartel.


    Same thing happening now via a different method, a few announce as per O/P others will just play Copy Cat
    • bowlhead99
    • By bowlhead99 8th Aug 18, 7:31 AM
    • 8,167 Posts
    • 14,926 Thanks
    bowlhead99
    Its 0.25%. 0.25% of s0d all is s0d all. Is there any point in worrying about it?
    Originally posted by surreysaver
    Maybe there are some people with more than sod all in their accounts, so that a quarter percentage point rise would be more noticeable amount of money than it is for you with your sod all in your accounts? (£25 per £10k).

    We're not talking about the interest rate changing by 0.25% of the existing interest rate (i.e. next to nothing). The article is talking about the rate going upwards so that if 'passed on' in full, it would increase your annual interest by 0.25% of all the money you have in your acount.... which is nothing to do with whether the banks are paying high rates or 's0d all' at the moment....
    • JuicyJesus
    • By JuicyJesus 8th Aug 18, 10:21 AM
    • 3,179 Posts
    • 3,412 Thanks
    JuicyJesus
    Profit seeking enterprises seek to make profit. Also, Pope found attending mass.
    urs sinserly,
    ~~joosy jeezus~~
    • apt
    • By apt 8th Aug 18, 10:55 AM
    • 3,072 Posts
    • 1,739 Thanks
    apt
    Profit seeking enterprises seek to make profit. Also, Pope found attending mass.
    Originally posted by JuicyJesus
    Mutual building societies are supposed to serve their members, most of whom are savers, not to maximize profits and Board/executive pay.
    • Thrugelmir
    • By Thrugelmir 8th Aug 18, 11:09 AM
    • 59,517 Posts
    • 52,823 Thanks
    Thrugelmir
    Mutual building societies are supposed to serve their members, most of whom are savers, not to maximize profits and Board/executive pay.
    Originally posted by apt
    Profits have been falling. One reason why the number of mutual organisations is in decline.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Money_Grabber13579
    • By Money_Grabber13579 9th Aug 18, 12:48 AM
    • 2,928 Posts
    • 1,428 Thanks
    Money_Grabber13579
    If I understand what Nationwide are saying correctly, it seems that a large majority of their mortgage holders are on fixed rate deals where the interest rate can!!!8217;t be raised. How ever the majority of savers are on variable rate products where the rates can be raised.

    However, if they can!!!8217;t generate the extra income from the base rate rise on mortgages, they can!!!8217;t pay out loads more money to savers.

    I!!!8217;m not going to say that I like it, but just seems to be a fact of the current market environment.
    Northern Ireland club member No 382
    • realaledrinker
    • By realaledrinker 9th Aug 18, 1:13 AM
    • 1,597 Posts
    • 549 Thanks
    realaledrinker
    When interest rates are near zero, banks struggle to make money from interest & fees alone. Rates payable & receivable are not that far apart. As a result they look to make savings elsewhere by slashing Head Office staffing levels and closing branches and borrow cheap money from the Bank of England.

    In the early 90s I was paying 15% percent on my mortgage and I can't remember the average savings rate but it would've been much less than half that - I remember getting giddy with excitement at the end of that decade when the Smile ISA paid 7.25%

    So when rates increase Banks will seek to recover some of that margin. That's how it works, from a 15 year senior Bank employee. If not happy, move banks or put your savings into stocks and shares and ride the wave with The Donald and Brexit.
    Last edited by realaledrinker; 09-08-2018 at 1:15 AM.
    Ethical moneysaver
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