Northern Rock Losing Competitiveness?

Anglo have prominent ads in all national newspapers over the past few days announcing their new rates which take effect from 14th June.
 


-within days Anglo Irish Bank Interest will be higher with the 30 day notice requirement a/c than Northern Rock. Yes they will only be higher for a few weeks but it's still a positive move.
 
I have just looked at the NR website and their (limited) interest rate increase will only be passed on from 06 July !! Not impressed with this..
 
muesli said:
I have just looked at the NR website and their (limited) interest rate increase will only be passed on from 06 July !! Not impressed with this..
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Why? Where can you get a better deal other than, say, up to €10K @ 5% with Rabo, €20K-€40K @ 4.75% or €40K-€75K @ 5% with INBS (21 days notice)?
 
my point being why does it take a month for them to pass on the rate increase ? Is this normal ?
 
I think it depends on the financial institution. Not every institution passes ECB rate changes on immediately or in full even when they offer ECB tracker products.
 
ah ok, I see...I have an NIB account also and they have already passed on the full amount so I thought NR would do the same..
 
What rate are you getting with NIB? Is it better than NR's current rate of 4.30% or their rate from July of 4.50%? With what conditions?
 
Its an ECB Tracker Series I - it's at 5% for > 20K

Ok, I understand that NR is under no obligation to increase their rates (unlike the NIB account) - but I still stick to my original point that if NR raise their rates, they should do it quicker than a month down the line..It would be interesting to see how quickly they raised their rates when they were a new entrant in the Irish market ?
 
In NR's defence -- they have a promise that they will write to you before any rate changes. This adds a week or two. They were equally slow to lower rates, from what I can remember.
 
I wonder how many big savers are transferring from Northern Rock (4.50% from 6th July) to Irish Nationwide Flexisaver 21. INBS rates for €20,000 + (4.75%) and for €40,000 to €75,000 (5%) are very competitive and they make a firm commitment on rates up to 31st December 2009. Admittedly 21 days notice for a withdrawal is sought but one can withdraw without the 21 days notice incurring a penalty equivalent to 21 days interest on the a amount withdrawn, which is not too punitive. The offer closes on 30th June.
 
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