abbey's paltry isa return 0.1%

sunshine54
sunshine54 Posts: 400 Forumite
in ISAs & tax-free savings
my Abbey isa statement last year showed £460 interest.
this year only £12. No letter telling me i'm was taken "off the hook and put into the keepnet"
is this part of the OFT investigtion?
i wan't to cash it in and take my money elsewhere, i know i'll loose the tax advantage but at 0.1% who cares:mad:
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Comments

  • koopa_coffee
    koopa_coffee Posts: 99 Forumite
    Don't close the account, just transfer it to another provider so you retain the tax advantages.
    Saving for a house deposit and associated costs:

    £7750/£30000 = 25.83%
  • scottishblondie
    scottishblondie Posts: 2,485 Forumite
    First Anniversary Name Dropper First Post
    Unfortunately it's a common practice these days to drop interest rates after a year, and they don't have an obligation to tell you about it. It catches an awful lot of people :(

    Don't know anything about any OFT investigation, but at this point I don't think there is anything much you can do other than a strongly worded complaint and taking your ISA elsewhere. There are some listed on the ISA top picks at 3% that accept transfers.
  • Zelie
    Zelie Posts: 773 Forumite
    Yes, the rate stated is usually just for 12 months. After that you have to transfer into their newest version or go elsewhere. It's pretty much the same for all ISA providers. Make a note in your diary for every March to remind yourself to transfer!
  • sheslookinhot
    sheslookinhot Posts: 1,973 Forumite
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    sunshine54 wrote: »
    my Abbey isa statement last year showed £460 interest.
    this year only £12. No letter telling me i'm was taken "off the hook and put into the keepnet"
    is this part of the OFT investigtion?
    i wan't to cash it in and take my money elsewhere, i know i'll loose the tax advantage but at 0.1% who cares:mad:


    It takes 5 mins to check interest rates every couple of months.
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  • Ifts
    Ifts Posts: 1,951 Forumite
    First Anniversary First Post Combo Breaker Name Dropper
    sheslookinhot wrote: »
    It takes 5 mins to check interest rates every couple of months.

    Or take out a fixed rate ISA that way you know they cant drop the rate until it matures, just keep a note of the maturity date when the rate usually does plummet and transfer out to a better product.
    Never let the perfume of the premium overpower the odour of the risk
  • PC_Gabriel_Kent
    PC_Gabriel_Kent Posts: 232 Forumite
    What was the OP expecting? 5% or 6%!!! Hello there is like a global recession and 2 years worth of financial meltdown. It is all very well moaning as per opening message but newspapers, branch, internet all have interest rates. What you really mean is 'i couldnt be arsed to check the rate'.
  • Zelie
    Zelie Posts: 773 Forumite
    PC_Gabriel_Kent wrote: »
    What was the OP expecting? 5% or 6%!!! Hello there is like a global recession and 2 years worth of financial meltdown. It is all very well moaning as per opening message but newspapers, branch, internet all have interest rates. What you really mean is 'i couldnt be arsed to check the rate'.
    Well I suspect the OP wasn't expecting a huge interest rate but was more puzzled by why it was so low when s/he had signed up at a much higher rate. It's generally not made explicit that most ISA rates are introductory only and it's easy to miss that bit of information in the small print and then get worked up at apparently being swizzed. Fortunately there is a whole messageboard of helpful people out there to give us all a bit of financial advice from time to time. :)
  • jh2009
    jh2009 Posts: 362 Forumite
    I sympathise with the OP. Im sure hes seen the news over the past year and doubt he was expecting 6% but not 0.1%.

    I check the rates i have regularly, keep up to date with current affairs, but i can understand those who don't or can't.

    ISAs were designed for long term saving, and rates should really reflect this. Why should you have to keep reviewing it annually or more frequently?

    I also feel desperately sorry for older customers. Many of them have no access to the internet and belong to a generation where loyalty was rewarded. Changing bank/savings accounts is alien to them and their reward for their loyalty is 0.1% interest. For those in ill health, shopping around for rates just isnt a priority, and they also get penalised.

    I know its our responsibility partly to check rates, which i do, but in my view to those who can't, its a polite and respectable form of theft.
  • sunshine54
    sunshine54 Posts: 400 Forumite
    PC_Gabriel_Kent wrote: »
    What was the OP expecting? 5% or 6%!!! Hello there is like a global recession and 2 years worth of financial meltdown. It is all very well moaning as per opening message but newspapers, branch, internet all have interest rates. What you really mean is 'i couldnt be arsed to check the rate'.


    why should i need to keep a check on abbey's rates?
    why are they so pitiful against the BOE rate?
    my isa is a abbey easy isa open since 2005
    interest credited annually:
    2006 -2007 £382
    2007-2008 £583
    2008-2009 £427
    2009-2010 £12

    yes i now interest rates are lowesr this year but i should be getting 2% not 0.1% !
  • Farway
    Farway Posts: 13,190 Forumite
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    sunshine54 wrote: »
    why should i need to keep a check on abbey's rates?
    why are they so pitiful against the BOE rate?
    my isa is a abbey easy isa open since 2005
    interest credited annually:
    2006 -2007 £382
    2007-2008 £583
    2008-2009 £427
    2009-2010 £12

    yes i now interest rates are lowesr this year but i should be getting 2% not 0.1% !

    It may be unfair, but life can be, just get on & move the ISA to somewhere else, and if you cannot see the need to check interest rates now & then either fix rates or take whatever the banks care to give you and stop complaining
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