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Did you apply for a Barclays Monthly Saver in December?
Former_MSE_Wendy
Posts: 929 Forumite
Updated 6 Jan 09
THE 7.75% DEAL IS NOW CLOSED.
What this is all about?
The Barclay's Monthly Saver had a fixed rate of 7.75% for ALL people whose first payment cleared in December 2008. Yet even though we'd had confirmation of this, as the rate changed on Barclay's website on 1 December to say 6%, there's been a lot of confusion in branches.
Last Week's Email
The email last week, was designed to let people know they could still get the rate, even though officially it'd changed... it said:
"Last Chance! 'Barclays Monthly Saver' 1 yr 7.75% fixed. Great Rate...Hit n Miss Service!
The rate's unbeatable. Open it by end of play Wed 31 Dec & pay in £20 to £250 every month for 12 months and you'll get 7.75% interest fixed for a year. The Problem? This rate's now only available in branches, and some MoneySavers have had terrible experiences trying to open it, given incorrect info or told the rate changed in Nov (please feedback your experience). Yet Barclays head office has now confirmed, in writing, it's still available at 7.75%. Want to try? Go to a branch NOW, with picture ID, proof of address and a cheque to make your first payment. For how these accounts work see the Updated Guide: Regular Savings Related Guides: Top Savings"
Note the info is no longer in regular savings (well it is but at the 6% rate, with a few differences)
What's been the problem?
While lots of people successfully opened it (as the original discussion below shows) As expected, we've received lots of emails and messages from MoneySavers saying misinformed bank staff only offered the 6% rate so we asked for a further statement from Barclays.
Mark Parsons, Head of Current Accounts, Savings and Mortgages, said on 5 Jan 09:
"The fixed annual rate of interest for Barclays Monthly Savings was changed to 6% on 1st December. Branch staff, www.barclays.co.uk and the savings leaflets are therefore all correct in stating that the rate is 6%.
"However the way the account works means that the rate is actually set when the first funds are deposited rather than when it is opened. Most customers do not fund the account until the month after opening it."
"Therefore the rate of 7.75% was still applied to accounts funded throughout December, to ensure that customers who had opened their account before the rate changed but had not funded it immediately got the 7.75% rate they were expecting. New customers who opened an account and made the first deposit before the end of December were also able to take advantage of this, as Martin Lewis correctly pointed out on www.moneysavingexpert.com.
"We apologise that there has been some confusion around this but we can assure all customers who opened a Monthly Savings account and made their first deposit on or before the 31st December that they will get the 7.75% fixed rate"
What should happen if you opened the account?Regardless of whether you were told the rate was 6% or 7.75% you will get the 7.75% rate if your first payment cleared before the 31 Dec 08, although your welcome letter will say you're getting 6%.
Your first statement will show the rate on your account. This is usually sent once a year but you can request it comes monthly by phoning or popping into your branch.
Sorry to all those affected for the confusion. Barclays has assured us the branch staff were updated about the account but the message hasn't always been received.
And obviously if anyone who correctly opened the account doesn't get the right interest we'll follow it through.
Thanks for taking part and feel free to discuss this below.
NOTE THE EARLIER DISCUSSION RELATES TO WHEN THE ACCOUNT WAS STILL ACTIVE
NOTE THE EARLIER DISCUSSION RELATES TO WHEN THE ACCOUNT WAS STILL ACTIVE
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I applied for a Barclays Monthly Saver in December in a Branch and... 198 votes
All went fine I got 7.75% no problem
29%
58 votes
They told me it was 7.75% but it was all a hassle so I didnt do it.
2%
4 votes
The staff didn't know the account's rate
9%
19 votes
They told me the rate was 6% so I didn't open it
14%
29 votes
They told me the rate was 6% but I opened it anyway.
39%
79 votes
The branch staff didn't know the rate of the account so i didn't open one
4%
9 votes
0
Comments
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More confusion ...
Martin's email says get into your branch and take your cheque with you.
I was told payments had to be by standing order, hence I'm sweating on mine that was set up on December 24 making it to Barclays by December 31.
Can anyone confirm if I could have paid by cheque?0 -
You can open with cash/cheque at the application stage.....future payments should be made by S/O which you'll be asked to set up.0
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Confusion in the branches?? Confusion at Head Office more like!! The current Savings Accounts interest rate leaflet to be had at Barclays branches since 1st December 2008 plainly says 6% not 7.75%. Well at least the one I've got with 1st December 2008 plastered on the front does! Mistake? Whatever. Rather than sit in a queue and then in front of a desk for as long as it takes to open one of these accounts in the hours remaining in 2008, it might be more exciting to pop to the shops and use the time bargain hunting for an elusive twenty quid saving on your next planned purchase! What do you mean you need to save up before you can go shopping?? :rotfl:
Oh alright then ...
But seriously, these monthly savings accounts are nought but interesting diversionary headline-grabbers, and put into perspective, even if you saved the maximum £250 per month for 12 months without withdrawal, I reckon you'd only be about £24 better off (before tax) at the end with a 7.75% rate than you would have been with the 6%. By my calculation, the total gross interest achievable in a year on one of these contracts at the 7.75% rate is around £124.50 (and about £96.63 at the 6% rate). So after waiting a year and after deduction of tax, you wouldn't even pocket twenty quid extra for your trip to Barclays later this morning, (not forgetting the underlying commitment to tie up £250 a month with them over the next 12 months to get it) when you could probably instead buy four terraced houses in Kings Lynn with it and have them all rented out by Easter!
As for re-iterating a policy to a branch network, with all else that's happened lately, I don't think they'd notice a re-iteration of anything much even if it slapped them smack between the eyes, do you?
I say go to the shops not the bank, and have more fun trying to save yourselves an elusive twenty quid - I hear that even if terraced houses in Kings Lynn aren't yet quite as cheap as I joked, you can at least get twenty pairs of socks in Debenhams for that money! :money: Who knows what socks will cost in December 2009 :eek:0 -
The only thing missing in Barclays' statement is whether the account should have been opened by 30 November 2008 or by 31 December 2008 to qualify for the 7.75% rate.
Once we know this criteria, I think we can probably assume that it will be followed consistently, seeing that it's usually all preconfigured into systems rather than having an individual key in the rate on each new account.
In either case, since interest is paid monthly (on the 1st working day of each month), we should all know what rate we got as early as this Friday (02 January 2009).0 -
Barclays own website appears to be quite clear on this - see their rates page, under 'Previous interest rates'.The only thing missing in Barclays' statement is whether the account should have been opened by 30 November 2008 or by 31 December 2008 to qualify for the 7.75% rate.The above rates were effective for accounts opened from 2nd June until 30 November 2008 and are fixed for the 12 month term.0 -
If this stands, then the Barclays statement posted on the savings article would have misled people into opening accounts in December and making their first deposits before 31 December 2008, thinking that they would get the 7.75% rate.Barclays own website appears to be quite clear on this - see their rates page, under 'Previous interest rates'.
However, if Barclays intended to extend the account opening "deadline" to 31 December 2008 as well, then I think it is something that the MSE team need to seek official clarification over and incorporate within the savings article.
I still believe the problem is around the omission of "account opening date" criteria from the Barclays statement provided to the MSE team, regardless of what their website currently states.0 -
Courteous efficient and friendly - opened one each for my wife and I last Monday - bank at Barclays so really easy to open - might only be £20 but better in my pocket than no-ones. Happy NY.0
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I opened a Barclays Monthly Saver yesterday, thinking the rate was 6%. I was told it would be 7.75% but only if I managed to credit the account before 31st December by standing order. That would be impossible as my current account does not support the faster payments ! At least I have got 6%.0
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Opened mine on 23 December with cash. Set up a standing order now for the other 11 months. No problems getting the 7.75% and I am not a Barclays customer.0
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This is all a bit of a joke.
Some people getting 7.75%...some getting 6%.
Their webiste clearly states 6%.
After recent dealings with Lloyds & Nationwide, I've come to the conclusion that nobody knows what the hell they're doing anymore :rolleyes:
I won't be rushing to my nearest Barclays branch.If it's not a bargain, it's not worth buying0
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