2007 – Another Great Year For The edges Scamming Their Customers

Millions of savers were shortchanged this year as edges and building societies failed to pass on the complete benefits of rising interest rates. The Bank of England had increased interest rates from 5% in January 2007 to 5.75% in July.

And however, the Big Name edges, Barclays, NatWest, ING and First Direct have no savings accounts that equaled the rate increase. In fact, the average rise across the banking industry was only 0.67 percentage points, costing savers an estimated £400 million.

Britain’s biggest savings provider, The Halifax truly only pass on 0.44 points of the 0.75 point interest rate increase to it’s savings customers, building a nice little profit cushion for themselves. And in a premature, but profitable move, it slashed it’s savings rate by 0.25 in anticipation of the Bank of England’s base rate cut. The cut will not be passed onto borrowers until January 2008, clawing back millions for the bank.

If you’re saving in any bank account, you must be vigilant and make sure you’re getting the best rate possible. I urge you to dump poor performing accounts and switch to better paying options.

Of course, higher rates made a lot of borrowers feel meaningful pain. And what did our lovely banking industry do to help their customers cope with the increased payments caused by the higher interest rates?

Why, they hiked up their fees of course! with a typical flat fee to position a mortgage now £800. And true to kind, the edges are charging a percentage fee on large loans, which is averaging at about £10,000 per loan.

Another new fee, this one for the abused credit card user, is designed to punish the responsible user. An annual £35 fee has been introduced by some edges for infrequent users and for those who pay off their bills in complete every month. and of course, it’s up to the edges to decide just what consists of infrequent use!

Interest rates jumped on credit cards without any adherence to basic rate movement, with some companies, Lloyds in particular pushing one of their card rates up by 10.4%!

And already though we have had an interest rate cut, relief will not be felt by all borrowers as edges fail to pass on the complete assistance to their customers.

nevertheless trusting your money to these people? The only person you should trust with your money is you!

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