Could someone tell me what bank of eng base rate means?
I went to a bank today to open up a savings account. or atleast to ask about one. but all her kept going on about was base rate this and that and something to do with inflation.i didnt understand a word.whats base rate and many banks say they give or take 1% below bank of england base rate
Answer
The bank of england base rate (bbr) is the interest rate that the bank of england set which banks and building societies follow. the bbr is currently set at 5.25%, so with regards to your savings account and by what you have said, you will get interest on your savings 1% below bbr. so anything in your savings account will accrue interest at 4.25%. mortgages, loans, savings accounts, current accounts etc, generally move in line with the bbr. if the bbr changes, then so will the amount of interest you acrue on your savings.hope that makes sense
