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Am I missing something?

melanie789 Avatar
7y, 11m agoPosted 7 years, 11 months ago
Interest rates are the lowest on record, but fixed rate mortgages account for 60% of the market so haven't moved, and those banks that are offering variable rate & tracker deals are all substantially above the current 1% base rate. Also, personal loans rates are still up around 8% or more, so how do they justify cutting savings rates to virtually zero - or am I missing something?? Seems to me they want their cake and eat it.
melanie789 Avatar
7y, 11m agoPosted 7 years, 11 months ago
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Comments/page:
#1
This is a sympton of the credit crunch, which just proves the base rate reduction is having little impact. The banks should be forced to reduce charges, especially those with tax payers bail out money.....
#2
banks borrow money from us in the form of savings etc. They then loan this money back to us in the form of loans, mortgages etc.
To make a profit they have to loan the money at a higher rate to us than the rate they pay to us on our savings. HTH:thumbsup:
#3
bankofmumndad
This is a sympton of the credit crunch, which just proves the base rate reduction is having little impact. The banks should be forced to reduce charges, especially those with tax payers bail out money.....


So, so true.
1 Like #4
Continued contemptuous treatment of 'customers'. They are thinking only of making good their losses, due to the unscrupulous bonus-hunting short-termism of the market playing etc etc that got the US and then the world into the so-called 'credit crunch'. Arrogant and ill-regulated.
#5
Yes, but they are still loaning us money at virtually the same rate as they were before the credit crunch, yet savings interest has reduced (in many cases) from 5% to 0.5% or less. How can they justify that??
#6
Question, if enough people with savings were to withdraw them and put them in a box under the bed (and pretty soon you won't lose out by doing so), would it bring the banks down, or at least force them to act reasonably?
#7
melanie789
Yes, but they are still loaning us money at virtually the same rate as they were before the credit crunch, yet savings interest has reduced (in many cases) from 5% to 0.5% or less. How can they justify that??


greed??:)
#8
melanie789
Question, if enough people with savings were to withdraw them and put them in a box under the bed (and pretty soon you won't lose out by doing so), would it bring the banks down, or at least force them to act reasonably?

It would bring them down - think Northern Rock.
#9
:roll: WELL the bankers ..misprint! have to claw their missing millions back somehow.
#10
treble99
banks borrow money from us in the form of savings etc. They then loan this money back to us in the form of loans, mortgages etc.
To make a profit they have to loan the money at a higher rate to us than the rate they pay to us on our savings. HTH:thumbsup:


Not strictly true actually that is how a building society works. Banks borrow from each other and the money markets to lend to us..... because all inter bank loans have stopped due to the fear of losing money (think leman brothers) the rates have spiralled.
#11
mmm, and look at how much credit card interest you will pay if you dont clear your debt by the end of the month
#12
bankofmumndad
Not strictly true actually that is how a building society works. Banks borrow from each other and the money markets to lend to us..... because all inter bank loans have stopped due to the fear of losing money (think leman brothers) the rates have spiralled.


Spot on. Banks borrow from each other at a rate known as LIBOR and this is presently about 2 1/2 % higher than base rate.

Also with rates this low they can only go one way and that is up, so they don't want to lend at too low a rate as in time you might ending up paying less than base rate which is not a good deal for the banks's.

Remember that this is global so have all the bank's been doing it wrong ?
#13
gym lougar

Remember that this is global so have all the bank's been doing it wrong ?

YES:x
#14
drives me crazy...they're all sharks.
#15
made me laff ive phoned up a lot of banks they want 1300 for me to have a 5% rate for 3 years when im on a svr of 4.5% and the lady said why dont i want the offer ummmm i wonder

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