Tuesday, 18 May 2010
INTEREST RATES ON SAVINGS ACCOUNTS
Following my last blog a member reminded me that " a smiling face still needs to be backed up by competitive rates" and pointed to our ISA rates as being currently adrift of the keenest on the market. I'm always grateful for feedback, even when its not entirely complimentary, and of course this topic is invariably a hot one whenever I speak to members at our Forums or in our branches. The truth is that we are in uncharted waters with a bank base rate of 0.5% and a lending market which is at best lukewarm. This means savings rates are under pressure across all banks and building societies. Of course at any given time a firm can offer a market-leading deal as a hook to attract new savers, sometimes with gimmicky "bonuses" or simply because they need to bring in funds virtually at any cost to remodel their balance sheet. But the Hanley in common with many other building societies chooses to strive for competitive interest rates over the longer term and to retain a true balance in our business so that the society is not jeopardised by paying interest rates that are unsustainable. We keep our savings rates under constant review and we will always strive to deliver the very best we can for our members. We aim to be around for many years to come, unlike some banks which offered eye-catching rates in the recent past and who have since folded.