Short Term Future for Savings Rates? | General financial discussion | Discussion forum

With great disappointment I've seen pretty much all the banks swallow completely the increased margins caused by the May increased lending rate for their profits. Nobody increased rates. In saying that I always ignore the bait and switch short term type "offers" as they call them. Even with those, there have been surprisingly few.

Now we might have another imminent lending rate increase, as soon as the coming week. Do you think if that happens, will savings rates, or for that matter, short term or 1 year GIC rates will go up? I'm sure any bank who wants reduced funding sources compared to bank borrowing will finally see the potential to get our relatively cheap funds. This particularly applies to 1 year/15 month type GICs, which lock us in during a rising interest rate market. I think we have to be daft to invest in those with the current uncompetitive rates.

What do you think? Are you going to take your money into dividend stocks if rates don't improve soon?