Slowness of banks in raising credit interest rates unveiled
Released on: June 19, 2008, 10:50 pm
Press Release Author: William Black
Industry: Financial
Press Release Summary: Studies have shown that there are some banks that have rewarded their customers for keeping credit. However, there are still numerous banks who are giving less than 1%. These banks should support their customers and increase the rates to a better level. Debt consolidation loan may help in supporting the financial pressure.
Press Release Body: The wars that are on between banks nowadays have everyone involved as a witness. However, there still are some banks which have failed to match up with the speed of others when it comes to the incentives that are being offered to the people who have their accounts in debts.
As per the comments of Money Expert, high streets banks have increased the average credit interest rates that they used to offer. However, there are still numerous banks which are not rewarding their customers for keeping their account in credit when this is so much required in the times that the people are going through. The earlier average rate was 1.6% which has now gone up to 2%. There are still banks which are offering less than 1% to the people who hold current accounts in their banks.
In 2007, more than 56% banks were offering sub-one percent rates to the people, which is no more than a trifle amount. Studies suggest out of all products, around 45% are still offering the same rates. With the current conditions however, the common man is seen to be burdened with the cost increases affecting housing, cost of living and the consumer spending has decreased. In such a situation, the banks should take efforts to reward those people who, in these tough times, are keeping their accounts in credit.
Director of Money Expert, Sean Gardner said, "It is a good thing to see that banks are thinking about the customers and have increased their rates of interest so as to reward them for the effort. However, figures say that almost an equal number of banks are providing less than 1% interest which is very disapproving. There are banks which are offering almost ten times that rate. So the customers should think of all those factors and then choose their deal."
The demands of the existing financial situation are increasing and this has made the people disabled and they have not been able to keep finances in the black. Such people can meet the needs with the help of a debt consolidation loan. This is a very good way out of the problems and can hand over controls to the borrower before his expenses reach an uncontrollable level.
Mr. Gardner further said that for the borrowers keeping in credit, the average of 3.57% was good and fair enough. He suggested that the customers should first look out for a deal which offers at least this interest rate so that their money too could get a boost.
With the help of a research, it has been known that only 15 current bank accounts have been offered interest rates which are beyond the level of 5% and these belong to six UK banks. The Lloyd TSB has been noted to raise the level of interest rate from 4 percent to 6 percent. However, on the flip side, it was also reported that the majority of high street banks still have a rate of less than 0.1% for at least one of their current accounts which is an appalling revelation.
Also, in addition to the rate of interest, there are other factors like customer support and other perks that the customers should consider before they chose their deal, according to Mr. Gardner. He suggested to the people of UK that their decision should be based on all factors combined and not just on the headline rate that they offered.
Those consumers who have been facing problems in meeting their expenses or have created debts in the existing financial condition can take up a debt consolidation loan to deal with the pressures. This will also help in meeting the monthly financial commitments that they have made. The strain of these problems has been felt by people. Inflation has also caused the prices to rise and this too has affected the people to a great extent.
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