Interest Rates

[Keith_M]

I've been reading an article in The Herald about the property market and one of the points they were making is rising bank interest rates.

So my question is, if lending interest rates are finally rising again, then why are the interest rates on people's savings accounts not reflecting this?

Aside from a very limited amount of savings that bring in maybe 2%, we're mostly seeing ridiculously low numbers like 0.05% per anum.

[Hibby Bairn]

I've been reading an article in The Herald about the property market and one of the points they were making is rising bank interest rates.

So my question is, if lending interest rates are finally rising again, then why are the interest rates on people's savings accounts not reflecting this?

Aside from a very limited amount of savings that bring in maybe 2%, we're mostly seeing ridiculously low numbers like 0.05% per anum.

You can get well over 1% on easy access savings accounts now.

[Keith_M]

You can get well over 1% on easy access savings accounts now.


When you think of the current rate of inflation, even somebody getting 1-2% on the whole of a savings account is pretty pathetic, but most of the banks stop paying you interest above a certain amount. Things that they used to push, like ISAs, are now pretty much a waste of time for the majority.

I could understand the reduction in interest rates being paid out immediately after the financial crash of 13/14 years ago, but it just feels like the Banks are now having a great time with the assistance given by various governments but the ordinary people who try to save a bit are now just unimportant.

[Mon Dieu4]

I've been reading an article in The Herald about the property market and one of the points they were making is rising bank interest rates.

So my question is, if lending interest rates are finally rising again, then why are the interest rates on people's savings accounts not reflecting this?

Aside from a very limited amount of savings that bring in maybe 2%, we're mostly seeing ridiculously low numbers like 0.05% per anum.

Banks can borrow money cheaper from Governments so aren't reliant on people's savings at the moment, until that changes you won't see saving interest rates in line with mortgage rates

[Keith_M]

Banks can borrow money cheaper from Governments so aren't reliant on people's savings at the moment, until that changes you won't see saving interest rates in line with mortgage rates


Yeah, that makes sense.

Just a shame for us ordinary sods with a few quid in the bank.


Not a major issue, compared to everything else going on in the world just now, I just felt like having a wee rant. 😏