So the bank of England puts up interest rates and inflation is rising with it… I seem to remember a time when the interest on your bank account savings would rise as well…my question is why aren’t our savings interest going up as well? No Idea why and so need it explaining?

8 comments

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  2. They are, I’ve had numerous emails from various cash saving account providers saying they’re increasing rates…

    Yes, not by much mind you. Saving cash & and keeping money in cash will (generally) always get you abysmal returns.

  3. They are, savings accounts are now upto 3% (many are around 1.5% though), each provider will change theirs when it suits them (when they start losing customers imo) but savings account rates are definitely improving.

  4. Banker greed, They’ll lend your money to bob down the road. Pay you 1% on your savings, but charge him 7%. Basically making 6% off your money.

    The bigger that gap between savings interest and loan interest, the better for the big rich banks.

  6. The interest rates are rising on savings mildly after an extended period of historically low returns.

    The thing is, there really isn’t much of an incentive for the banks to increase what they pay you as it lowers their profitability. The only reason to actually pay savers interest on their savings is to stop those savers moving their money elsewhere – but, with all the banks offering essentially zilch and with a lot of ‘slop’ in the system as a hangover from various stimulus programs over the past 10-20 years, the banks have no need for such competition – and you (and I) get the short straw.

  7. It doesn’t appear that they are as people have more debt but savings rates go up also.

  8. The big banks raise savings rates very slowly, because most people don’t engage or shop around so there’s low risk of them losing customers. Shop around and you can find higher interest rates

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