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Why are savers not wanted by the banks ?
7 Answers
I thought the banks would want Savers.
All the interest rates but especially Cash ISA's are being reduced to almost no interest at all after inflation is considered.
Why is this do you think ?
All the interest rates but especially Cash ISA's are being reduced to almost no interest at all after inflation is considered.
Why is this do you think ?
Answers
Best Answer
No best answer has yet been selected by sarah_louise. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Base rates are 2% and are expected to fall further. The interbank LIBOR rate is under 3% and is falling. The banks will set savings rates at a level which allows them to attract sufficient funds from savers whilst making sure they make a profit between their lending rates and savings rates.
My tracker mortgage rate has fallen to 2.99% so whilst I'd love my bank to still pay me 6% on my savings I think I'm quite lucky to be getting 3.5%.
What rates are you looking for Sarah_louise, you can still get 4-5% which is pretty good in the circumstances.
And remember, inflation is forecast to fall from 4-5% to 1-2% very quickly.
My tracker mortgage rate has fallen to 2.99% so whilst I'd love my bank to still pay me 6% on my savings I think I'm quite lucky to be getting 3.5%.
What rates are you looking for Sarah_louise, you can still get 4-5% which is pretty good in the circumstances.
And remember, inflation is forecast to fall from 4-5% to 1-2% very quickly.
Many small building societies often offer the best rates over time because they're still mutual,have no shareholders and are only allowed to borrow upto 50% of their lending portfolio.
I have a cash ISA with Kent Reliance BS whose rates have consistently been just below the headline grabbing rates for the last few years,currently 4.01% I think.
I have a cash ISA with Kent Reliance BS whose rates have consistently been just below the headline grabbing rates for the last few years,currently 4.01% I think.
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