abbey's paltry isa return 0.1%

24

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  • rb10
    rb10 Posts: 6,334 Forumite
    edited 2 April 2010 at 1:53PM
    sunshine54 wrote: »
    why should i need to keep a check on abbey's rates?

    Because when you opened the account, you agreed that Abbey could change the interest rate that they paid you - it was a variable rate account.

    So unless you want to get a surprise when interest is paid, it's a good idea to keep an eye on how much they are paying you.
    sunshine54 wrote: »
    why are they so pitiful against the BOE rate?

    Simply because it's a very basic ISA that's not widely marketed by Santander any more, so they focus their higher rates onto the other accounts.

    And it's only actually a fraction below the BOE rate (which has been 0.5% for over a year).
    sunshine54 wrote: »
    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

    So it looks like they offered decent rates for at least three years - which is a lot more than most banks and building societies would do now. That looks pretty good.
    sunshine54 wrote: »
    yes i now interest rates are lowesr this year but i should be getting 2% not 0.1% !

    You can in fact get much higher than 2%.

    See here for a list of the best paying ISAs that accept transfers in - that way you can keep the tax-free status and get a much higher rate.

    Take this as a lesson for the future: if you choose a variable rate, ensure you check the rate every few months to ensure that it doesn't drop. It only takes a few seconds to do, they all publish their rates online.
  • jh2009
    jh2009 Posts: 362 Forumite
    rb10 wrote: »
    Because when you opened the account, you agreed that Abbey could change the interest rate that they paid you - it was a variable rate account.

    So unless you want to get a surprise when interest is paid, it's a good idea to keep an eye on how much they are paying you.



    Simply because it's a very basic ISA that's not widely marketed by Santander any more, so they focus their higher rates onto the other accounts.

    And it's only actually a fraction below the BOE rate (which has been 0.5% for over a year).



    So it looks like they offered decent rates for at least three years - which is a lot more than most banks and building societies would do now. That looks pretty good.



    You can in fact get much higher than 2%.

    See here for a list of the best paying ISAs that accept transfers in - that way you can keep the tax-free status and get a much higher rate.

    Take this as a lesson for the future: if you choose a variable rate, ensure you check the rate every few months to ensure that it doesn't drop. It only takes a few seconds to do, they all publish their rates online.

    Legally abbey have done nothing wrong................ But morally im going to repeat the fact that all banks that keep launching new accounts and reducing the interest on old accounts are just rather polite versions of common criminals!

    MY gran is an example. Shes 90. Saved all her life, but has as much interest in the internet as my dog. She doesnt drive so just walks to the local shop each day. And comes from a generation of loyalty to her banks. So when I've told her repeatedly to review her savings, unless i force her down the bank at gun point, or get her declared insane and take control of her money, she leaves it where it is and it carries on getting 0.00001%!

    I keep a view on my savings accounts, but i dont agree with people on here who think those who don't (or realistically can't in many cases like my grans) deserve all they get when they get fleeced!
  • At 90 she probably aint too fussed what rate she gets.
  • jack_of_all
    jack_of_all Posts: 43 Forumite
    jh2009 wrote: »
    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.

    I could not agree more, To many people the existnce of a government tax incentive and a limit on the permissable investment has instilled upon the less savvy of us that an ISA is the first port of call for low/moderate long term savings. This gives a false confidence to the more vulnerable and I feel strongly that some moral balance should be enforced. ISA's should be protected from the on the hook then robbed 12 months down approach that other investment accounts offer that are OK for those who are up to chasing the rates and are happy to administrate. Yes it's just a feeling, but I feel it amounts to a confidence been created by the government and then exploited for many of the vulnerable among us.
  • Mickygg
    Mickygg Posts: 1,737
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    At 90 she probably aint too fussed what rate she gets.

    Pretty ridiculous comment. How is this any help??? Fyi my grandfather is 95 and he cares what rate he is on.
  • Why would he care? The rate does not matter if they have a large sum of money does it. They never spend any of it anyway so what is the point of it?
  • Mickygg
    Mickygg Posts: 1,737
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    Why would he care? The rate does not matter if they have a large sum of money does it. They never spend any of it anyway so what is the point of it?

    Not worth a proper answer. Another stupid point. Ever heard of living off interest and having to spend lots of money to be in a home???? 'They' never spend it, you don't have a clue.
  • Spark
    Spark Posts: 817 Forumite
    I have just found out what interests I have earned this year, I have earned £0.97 on £1200, last year I had £17.55 on £700.
    I earn more interests with my current bank account ,than with my Isa which suppose to be a saving account, even though I am paying taxes on the interests I am earning with my current bank account. (Both my Isa and bank account are from the same bank).
    I am not bothered that much as I haven't got much in it, but still "take the mickey" came into my mind when I saw the pennies.
    I have just reached the "why bother at all" mood. I will not spend my precious time checking the rates and moving from account to account, nor do I have enough savings to make much difference anyway.
  • Mickygg wrote: »
    Not worth a proper answer. Another stupid point. Ever heard of living off interest and having to spend lots of money to be in a home???? 'They' never spend it, you don't have a clue.



    Whats wrong with living off the capital? Why the obesession of living of the interest. Times are tough so deal with it. You do not have any clue at all.
  • jh2009
    jh2009 Posts: 362 Forumite
    At 90 she probably aint too fussed what rate she gets.

    There is a small element of truth with this with my granmother, but that doesnt mean its right.

    It sounds like you are saying is shes old and so deserves to be ripped off. Well you wouldnt kick a stick away from a cripple..... or would you?!

    I think each bank/building society should offer one type of each saving account/product and offer a sustainable long term rate to long term investors, maybe even rewarding those who are loyal. (And i say that as someone who plays the current system, and who would probably lose out financially in the short term with such a system.).
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