Bank of England Rate Change


#1

Hi

Noting the interest rate has gone up, are Starling going to increase the saving rate in line?


#2



#3

Not really going to be too worried about Starling raising their rate, even if it matches the Bank of England base rate I won’t be using it for saving.

Probably be a few days before other banks decide whether or not to pass on the rate increase, I’m sure a few will, considering they didn’t bother much after the last increase.


#4

If they do my 40p a month I earn will increase to about 60p. I may be able to retire earlier :raised_hand_with_fingers_splayed::+1:


#5

Maybe don’t think of it as saving but more as you money not depreciating as quickly…


#6

First direct texted me within minutes to say they’l be in touch about my mortgage - lol can’t wait, guaranteed savings rates won’t increase as much as mortgage rates.


#7

I see Starling have said they aren’t putting up either overdraft rate or credit interest rate, good on one hand, bad on the other! I think my goals will be deleted soon, just not worth keeping anything bar a few hundred if only 0.5% (or 0.25% if over £2.5k or whatever the limit is).


#8

I’ll be slightly annoyed if they don’t increase it…FD which is the closest bank to starling put their easy access ISA up to 0.75% and I see it going to 1%. The only reason that staling won’t do it is they’ll make more minty on their investments without having to pay there customers more. What’ll they’ll overlook is that more deposits means more money they can invest :+1:


#9

I would like to see an outside savings provider tie into Goals - so to have a goal with higher interest, possibly over a fixed term as well…


#10

Prepare to be annoyed!

https://community.starlingbank.com/t/is-starling-going-to-put-up-interest-rates-after-the-recent-rate-change/7544/2

The new FAQ;

“No, we’re not raising the cost of borrowing on our overdrafts following the Bank of England decision to raise interest rates in August 2018. The interest rate we pay on current accounts also remains unchanged.”


#11

That’s just silly. People will keep their deposits in other accounts which means starling will have less to invest…backwards if you ask me!


#12

I’d like to see Starling offer a better interest rate, on say, one goal.


#13

Very disappointed that Starling have decided not to pass on the interest rate rise to customers. This is something that the BoE always strongly suggests that banks do.

The way the FAQ is worded is a bit disingenuous. Ok, the overdraft interest rate isn’t being increased but it’s already 15%. Saying “we’re not increasing credit interest either” doesn’t wash.


#14

I’ve no issue on the ‘current account’ but having things like goals is becoming pointless in all honesty other than for very small amounts or short periods.

I’m slowly finding less and less reason since joining at the turn of the year to actually switch over to Starling. Currently about the only plus point is a few bits of the App but negated by lots of other things including other bits of the App!

I don’t see the marketplace taking off to any degree as it’s just a limited offering on any given area whether thats pensions, mortgages, or the new savings. Nothing is unique.

Theres a real danger that Starling won’t survive in it’s current guise unless it ups it’s game considerably and quickly.


#15

Judging from the early press responses, the markets aren’t expecting many banks to do anything immediate with savers’ rates. The lending rates are visited first it seems (as @Andrew_Buckland reports :smirk:).

Couple of articles last day or so…

Excuse the ads…


#16

Not sure the increase is going to make much difference, 70% of mortgages are fixed rate so won’t be affected anyway. The other 30% will see an increase.

For savers though a few banks have increased rates but the big ones are always going to be slow increasing rates.

Interestingly out of the new digital banks, more have increased rates than traditional banks have done which is to be expected. Even so, many haven’t changed anything yet.

We are still only talking about a very few banks changing saving rates so far.


#17

I was watching to see if Starling passed anything on - as they never at the last rate rise either. Guess I won’t be moving entirely to Starling then. They’re making a mistake IMO, but if they cared what their customers thought they would already have passed on the rate rises and my opinion would be mute.


#18

Which banks have already done so, Andy?


#19

I think as well, it all comes down to the bigger picture that we so often forget. More money given to us ultimately means less kept by Starling to use on providing the service. HSBC or RBS can give me every penny i’m due, and then some, because they’re a robbing bunch of crooks. A young bank like this or Monzo, part of my emotional deal with them is that i may not get the best deal in the land in terms of pounds shilling and pence, but i will be rewarded in various other ways, not least getting a say in the creation and running of a new bank. And socks, apparently, i wouldn’t know… :roll_eyes::socks:


#20

I can only answer with regards my other bank account which is with Santander who have said savings will increase from the end of this month - a more positive message than Starling appear to have given out.