BoE raising interest rates to 0.25%

Would this change in interest rate effect the Allica Bank account positively or not change it at all?

From my understanding, mortgage rates will increase and saving rates will increase as well.

Happily I’ve just received the ‘big news’ from Chip, to let me know that the base rate has just been raised…and to remind me that the interest/bonus I’ve been receiving has dropped from 1.25% to 0.7%. Should have called it ‘Great News’. Or ‘Happy Christmas’.

This is a question I have asked a couple of times over the last few months but still no answer from Chip management. So I have to assume the interest rate with Allica is fixed and won’t change. The risk is that as other savings accounts increase their rates, Chip will be left behind.

Its not a tracker account so there is no guarantee if or when it will increase in response to base rate rises or decrease in response to base rate falls.

The market will probably trend upward, but on an individual account basis changes are only guaranteed with tracker accounts.

Hi everyone,

We wrote up what this means for savings here: The Base Rate is up. When will your savings rate go up? have a read.

@w2h1982 Savings work differently from mortgages with regards to fixed vs. variable. But we answer most questions in the blog post.

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Thanks for the update Alex.

The comment about mortgages rates however did not come from me but I am sure @Spur will read the response too