Expect Bank Loyalty Reward Cuts

Expect Bank Loyalty Reward Cuts.

This week sees speculation that Bank of England Monetary Policy Committee meeting due to take place on 4^th August will result in base rate interest cuts to 0.25% or even to 0.0%.

Given mounting pressure on banks to make money with even less interest to be charged out, we suggest you may see a lowering of headline rates paid on current accounts when you pay a minimum amount in each month e.g. 3% at Santander or get a monthly loyalty reward paid into your account e.g. £5pm with the Halifax Reward Current Account.

Comment

Banks are under increasing pressure to build up capital reserves, given the banking crisis of 2007 as well as both residential and commercial property prices falling, meaning banks have a greater proportion of debt compared to asset values and with low interest rates meaning they can only lending out at lower rates to remain competitive, they equally may need cut their loyalty schemes.

It is interesting whenever you log into your banking app or online, you are seemingly being asked to accept new terms and conditions. We wonder how many people have read those conditions?

We wonder how many banks included the ability to change their loyalty schemes without further notice in the small print of those new conditions?