Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

UK Savings Shock as Rates Were cut Before Base Interest Rate Vote

Personal_Finance / Saving Bonds May 15, 2018 - 06:16 PM GMT

By: MoneyFacts

Personal_Finance

Savers still deflated from last week’s base rate announcement will now have to stomach the fact that the savings market has undergone a bit of a stumble. As the market prepared itself for a base rate change, there were unforeseen savings rate cuts, with some deals disappearing altogether.


In fact, research from moneyfacts.co.uk, can reveal that, since the start of April, there have even been several rate cuts made to Best Buy deals. In addition, various deals were withdrawn entirely from the market in the run-up to the base rate announcement, which have yet to be replaced. Some accounts have seen their rates cut three times since the start of April*, a clear sign that providers had to adjust their exposed market position.

Rachel Springall, Finance Expert at moneyfacts.co.uk, said:

“Savers who held out on investing their cash into a top rate, having pinned their hopes on a base rate rise last week, will be feeling disappointed by the outcome. The decision to keep the base rate on hold was in complete contrast to a month ago, where a rise was tipped to be on the cards. Over this period, right under the noses of savers, some of the best deals on the market were pulled from sale or had their rate cut; providers themselves had priced in a rate rise and, not wanting to be forced to pay too much should they have to raise their own rates afterwards, they opted to cut their products instead.

“The savings market has faced these cuts and withdrawals since the start of April, as providers adjusted their Best Buy positions in the run-up to what was once thought of as rate rise certainty. It just goes to show that the market can react to the possibility of a base rate change way before an announcement comes around, and in fact, this is a bit like déjà vu.

“If we look back to October 2017, a month before the Bank of England rose base rate by 0.25%, we saw several savings providers cut their rates. This included Halifax, who cut their Everyday Saver from 0.25% to 0.05%, and then upped the rate in November 2017 – after the base rate rise – to just 0.15% for new customers.

“The flow of funds into some of the less familiar banks has also played its part over the last few weeks, with Charter Savings Bank, Ikano Bank, Masthaven Bank Ltd, Secure Trust Bank, United Trust Bank and Wyelands Bank cutting the rates on their one-year fixed bonds. In more positive news though, it’s not every brand making this move, as Paragon Bank recently opened its easy access account to new customers, showing that they are keen to attract new money.

“It may be prudent for savers to focus their attention on the top deals right now, and not resign themselves to waiting for a base rate rise to come along. This way, they can be in the right frame of mind to avoid missing out on the best rates available.”

*Tesco Bank easy access saver was cut three times between 6th April and 3rd May. Ikano Bank 1 year fixed bond cut twice between 12 April and 3 May. Selection of cuts and withdrawals appeared between 1 April and 9 May 2018.

moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, there is no commercial influence on the way moneyfacts.co.uk ranks products, showing consumers a true picture of the best products based on the criteria they select. The site also provides informative guides and covers the latest consumer finance news, as well as offering a weekly newsletter.

MoneyFacts Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in