BoE increases base rates to 5.25%

(Does Mister Burns impression rubbing hands together) E-e-exclelent!

FoFP

Yep, cheered me up too. :-))))))

OK, what'll cheer me up is if the banks and building societies now pass on the interest rates for savers up immediately. Anyone care to point out the good ones that have yet?

Every month when the BoE make their decision, the banking departments responsible for the decisions just need to press a few buttons to make it happen -its just like a computer program - if the interest rate goes up, put the mortgage interest up and the savings rate up, if it goes down do the opposite, etc - its hardly rocket science.

But no, the banks and building societies drag their feet leaving the poor old saver to wait several months before any of the banks and building societies bother (on purpose of course), yet surprisingly enough, the mortgage rate goes up pretty much instantaneously.

Its no accident the banks make record profits year on year, screwing the pennies out of us all. So, welcome to 2007 - another fine example of rip-off Britain in action.

Well as you can make more in dividends on bank shares than in interest on many of their accounts the answer is simple and open to everyone.......

But is this true in practice? I read here:

I thought there were already accounts paying base rate or higher.

Seems to me it is the banks that may be the suckers..

Mine didn't. Believe it is in the T&C to go up within a certain time. Hence the term 'tracker'.

They probably need to make money from high inertia customers to pay for free banking for people like me. Someone has to pay, and I am sure as helll it ain't gonna be me..!

Just play the game. I know a credit card co. that has a free (0800) customer service line for all enquiries. Everytime you call the first thing they want to discuss is payment proteciton insurance, home insurance, blah, blah, blah, yadia, yadia, yah... If it wasn't for people buying these products we would probably have no free customer service line.

Or take Ryanair. They want to make flights for free, paid for by people who purchase scratch cards.

So all those who purchased PPI and scratch cards, I salute you..!

Retail banking in the UK is already competitive and well-regulated.

But if you think that the banks are all conspiring to rip off customers (and that the regulators are ignoring it) then you're free to start a bank of your own. Surely, with superior rates, customers would flock to you...? ;-)

Icesave guarantee their interest rate will exceed the Bank of England Base Rate by at least 0.25%, but their web site is still showing their rate as 5.45%. They'll need to increase that to at least 5.50% within the next 10 days in order to comply with the guarantee they have given.

Chris

Why do people think they speak on behalf of others ?

Do you know anyone who doesn't have any form of account with a bank or building society?! Hence my rather, god forbid, rash use of the word "us"!

And, of course, the other factor to take into account is the risk to capital i.e. it is likely to grow :-)

P.S. Lloyds/TSB is paying 5.85% in dividends - Not that I am recommending them.

Presumerably...but even that isn't guaranteed, unlike savings rates which although they may not be above inflation and of course fluctuate, will always ensure the nominal value of your money increases...

Hmmm, interesting - is that net or gross?

I'm not recommending them either, but if I were a Lloyds investor / customer, I would open up a Regular Saver account with a fixed rate 6.4% net interest rate...

which whilst it may feel good is totally irrelevant.

recommending

I believe that it is net of the 10% tax - but havent checked.

why ? what is wrong with their 8% account :-)

That's the account I was talking about - its 8% gross / 6.4% net : )

The current share price.

(or at least the price at the time that figure was calculated).

Actually I do, but lots of us that do have bank accounts actually make money.

Not true. I had an email saying that the interest rate was going up on my savings effective from Thursday 11th. Not yet had any such notification from my mortgage provider.

That's correct.

Daytona