Inflation: Victoria Scholar discusses rise in interest rates
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This comes following the Bank of England’s decision earlier today to hike the UK’s base rate by 0.50 percent to 1.75 percent to mitigate the rise in inflation. The bank confirmed changes to its in-credit interest rate on 1I2I3, Select and Private Current Accounts. Furthermore, Santander outlined a series of interest rate rises across the financial institution’s range of non-base rate linked savings products.
From August 11, the bank’s 1I2I3, Select and Private current accounts will experience an in-credit interest rate increase from 0.75 percent. AER/gross (variable).
This will apply to balances up to £20,000 and to one percent AER/gross (variable) on balances up to £20,000.
As a result, Santander customers will be able to earn up to £200 per year in interest.
Furthermore, the bank’s customers will be able to get cashback on household bills for a £4 monthly charge.
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Other rate rises include the Junior ISA which will increase from one percent to 1.25 percent from September 2.
On top of this, the Flexible Saver for Kids account will rise from 0.35 percent to 0.60 percent on the same day.
Those looking to get on the property ladder will see Santander’s First Home Saver account go up from 0.75 percent to one percent.
The bank’s Help to Buy ISA will also enjoy an interest rate increase from 0.75 percent to 1.25 percent.
As well as these changes, Santander also announced its base rate linked products will be affected following the Bank of England’s intervention, including its mortgage offerings.
All of the bank’s tracker mortgage products linked to the base rate will rise by 0.50 percent from September 3.
Among the products affected will be the Santander Follow-on Rate (FoR) which will rise to five percent.
The Alliance and Leicester mortgage products, which are also linked to the base rate, will go up by 0.50 percent from the start of next month.
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