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MSE News: 'Teaser' introductory savings rates to be reviewed by watchdog
Former_MSE_Helen
Posts: 2,382 Forumite
"Using introductory rates to tempt savers into opening accounts is to be reviewed by the Financial Conduct Authority..."
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'Teaser' introductory savings rates to be reviewed by watchdog
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'Teaser' introductory savings rates to be reviewed by watchdog
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Comments
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I've often thought this was very misleading to the average joe who isn't very clued up in these things. In my younger days I fell afoul of them a few times.
Now that I'm wiser though I like having them around as they allow me to get better rates than would otherwise be available.
Its a bit late now though, because I don't actually see them on the market anymore. The FCA is about 3 years too late, as useful as ever I see.Faith, hope, charity, these three; but the greatest of these is charity.0 -
And as a result of the investigation the FCA bans any introduction bonus rates leaving the smart savers who shift their savings around worst off as all the banks ditch the year long bonuses and shift to <0.5%0
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Very much doubt if my Halifax Online Savers would still be paying 2.8% if they hadn't made the mistake of paying a fixed 2.7% bonus.
Everybody's more careful now though. There are some honourable exceptions, including the big three, but many accounts opened with a 12 month promo last year got their interest slashed within 12 months. That probably wants looking at."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
So are they going to fine women for flaunting their youth and beauty to attract a husband , and then let themselves go old and flabby after the marriage contract is signed?
Abolish alimony, which is just an exit penalty by another name.0 -
You can still cut interest rates on accounts that don't have a bonus.
There's nothing to stop a bank paying a 2.80% "clean" variable rate and then cutting it to 0.10% a few months later.
Marketing it as a bonus is more up front and honest.0 -
The Post Office is a good example of those cutting their rates. I hate the accounts that restrict you to so many withdrawals per year otherwise your interest drops."Look after your pennies and your pounds will look after themselves"0
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Ideal for me.typistretired wrote: »The Post Office is a good example of those cutting their rates. I hate the accounts that restrict you to so many withdrawals per year otherwise your interest drops.
If it pays more interest and I like easy access but withdraw rarely that's a winner.0 -
I don't understand why MSE is so keen to get its way on keeping the extra layer of complexity in the savings market, when they are in favour of the energy market being simplified because, according to their polls, its 'what people want'.
I see the two markets as having the same issue. The average rates paid to all savers will be dictated only by what banks want to pay, whether that's with everyone getting a 'fair' rate, or with the market being split into those getting a lousy rate and those getting a good rate. Ditto the average cost of energy will be the amount needed to make the energy compaines a tidy profit, and won't be affected by whether it's everyone paying near enough the same, or with the current model of allowing the active switchers to get a better deal.
So why is MSE so keen on interfering in both markets in the completely opposite direction? Shouldn't they do a poll on what customers want with regards to savings products, and campaign for that?
FWIW, I want the tarts to get the best deal in both markets
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opinions4u wrote: »Ideal for me.
If it pays more interest and I like easy access but withdraw rarely that's a winner.
I use my easy access savings account as a home for money which I can nip in and out of and move back to my main current account, to cover bills, direct debits, standing orders etc, as I keep only a couple of hundred in my main current account, which does not pay interest, transferring any excess money to good savings accounts. Come November my Natwest esaver drops its interest rates so only Coventry (1.98%) which only allows 4 withdrawals or Nationwide loyalty saver (1.70%) could be used in this way."Look after your pennies and your pounds will look after themselves"0
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