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.
 
ClubMan said:
Why? [broken link removed] are still paying less than Northern Rock other than on their regular saver account and long term fixed rate accounts - and particularly on their demand deposit account (3.80% gross CAR) which is the one most comparable to NR's Demand Online account. And this is before NR's increase from 4.30% to 4.50% gross CAR kicks in next month! Like the Indo in recent months I think some people are getting confused and missing the point that while NR may not be passing on ECB rate increases in full they still offer one of the best demand deposit rates for sums of €1K+. The Sunday Indo even recently urged people to avoid NR because they were "ripping people off" in doing this! :rolleyes:
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-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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