Sainsbury's bank covertly rewarding new customers
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[Deleted User]
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I've been a Sainsbury's savings customer with their eSaver Special for a long time. As with other savings products this account has had its interest rate slashed in recent years. However I was shocked to find a few days ago that Sainsbury's have been covertly rewarding new eSaver Special customers at the expense of existing ones. If you look at their savings page:
https://www.sainsburysbank.co.uk/savings/sav_savings_zone
you'll see the eSaver Special listed. As I've got one already I made no attempt to look at the detail. However someone drew my attention to the fact that, despite retaining the identical account name, rates are significantly higher than the rate drop suffered by my account which only occurred a few weeks back. I thought, ah, as the account has exactly the same name and interest rate tiers, maybe Sainsbury's have accidentally omitted to notify me of the good news. No such luck and Sainsbury's tell me existing customers will continue to wallow in their lowly rates and they will make no effort to draw customers' attention to the new customer rate hike.
While I'm familiar with unscrupulous other savings institutions hiking rates for new customers only, at least they have the decency to change the name of the account by, for example, appending Issue 2 to the name. Sainsbury's told me I had to go through the hassle of closing my account and opening a new account with the identical name to enable me to join their first class customers. I think this is a really sneaky way of attempting to prevent existing customers from finding out that Sainsbury's is giving priority to new customers.
https://www.sainsburysbank.co.uk/savings/sav_savings_zone
you'll see the eSaver Special listed. As I've got one already I made no attempt to look at the detail. However someone drew my attention to the fact that, despite retaining the identical account name, rates are significantly higher than the rate drop suffered by my account which only occurred a few weeks back. I thought, ah, as the account has exactly the same name and interest rate tiers, maybe Sainsbury's have accidentally omitted to notify me of the good news. No such luck and Sainsbury's tell me existing customers will continue to wallow in their lowly rates and they will make no effort to draw customers' attention to the new customer rate hike.
While I'm familiar with unscrupulous other savings institutions hiking rates for new customers only, at least they have the decency to change the name of the account by, for example, appending Issue 2 to the name. Sainsbury's told me I had to go through the hassle of closing my account and opening a new account with the identical name to enable me to join their first class customers. I think this is a really sneaky way of attempting to prevent existing customers from finding out that Sainsbury's is giving priority to new customers.
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Alas, banks are like any commercial business. They all rely on customers being unaware of their business practices and expecting loyalty and good treatment in return for their patronage.
For all existing customers this applies to banks (no special interest rates), telecoms (no 50% off Sky TV) and insurance (massive hike in your renewal premium) etc.
The only option is to vote with your feet and leave for better elsewhere. When the next bank or business has lost interest in your new custom, please repeat the prescription.:beer:0 -
The reverse can also be true. I've had easy access savings accounts with building societies that have better rates than any of the best-buy tables, but new members get a different issue with a lower rate.0
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The reverse can also be true. I've had easy access savings accounts with building societies that have better rates than any of the best-buy tables, but new members get a different issue with a lower rate.
Yes but it is confusing and it would be much better practice to add an issue number.
I have a Metrobank Instant Access Savings Account. For a long time after the advertised rate was reduced, the bank was able to boast that no customer with one of these accounts was earning less than rate at the time their account was opened. I took me a while to realise that this was the case.
Sadly my actual rate has now been reduced to the advertised rate.0 -
This is quite true. But my point is that I consider it amounts to deception by having an account with the same name and new customers get a preferential rate to existing customers. Up to now whenever I spoke to someone and compared our savings accounts they could tell me they have an xyz account with a particular provider and the interest rate is n%. Now, using the Sainsbury's dirty trick, if we both have an eSaver Special, we could be getting totally different interest rates. Indeed, if this trick catches on, Sainsbury's and other providers could hike the rate up weekly for new customers while at the same time (and for the identical account) reducing the rate for all existing customers.The reverse can also be true. I've had easy access savings accounts with building societies that have better rates than any of the best-buy tables, but new members get a different issue with a lower rate.
I think MSE should lobby the FCA to ban this practice as deception.0 -
You've confused me.
I have this account so thought I'd check Followed your link but all I can see is the single set of tiered-rate interest rates, apparantly for everyone with this account>
What rate are you getting and is it listed on the S site?0 -
Deleted_User wrote: »I think MSE should lobby the FCA to ban this practice as deception.
I think you should take responsibility for your own interests and move bank. You have a problem with the world here, you can change what you do (move bank, MSE are even good enough to sum up the offers for you).
Or you can go tilting at windmills to try and change the world. Good luck with the latter course of action!0 -
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It is surprising they have so many variations. You would have expected anything older than a year to be on the same rates.All the interest rates are here
Having said that, Sainsbury's should be commended as they are continuing to offer near market leading rates on accounts that were opened nearly five years ago. Pretty much everybody else offer the higher rates for one year then drop them to peanuts so you have to keep switching.0 -
Deleted_User wrote: »I've been a Sainsbury's savings customer with their eSaver Special for a long time. As with other savings products this account has had its interest rate slashed in recent years. However I was shocked to find a few days ago that Sainsbury's have been covertly rewarding new eSaver Special customers at the expense of existing ones. If you look at their savings page:
https://www.sainsburysbank.co.uk/savings/sav_savings_zone
you'll see the eSaver Special listed. As I've got one already I made no attempt to look at the detail. However someone drew my attention to the fact that, despite retaining the identical account name, rates are significantly higher than the rate drop suffered by my account which only occurred a few weeks back. I thought, ah, as the account has exactly the same name and interest rate tiers, maybe Sainsbury's have accidentally omitted to notify me of the good news. No such luck and Sainsbury's tell me existing customers will continue to wallow in their lowly rates and they will make no effort to draw customers' attention to the new customer rate hike.
While I'm familiar with unscrupulous other savings institutions hiking rates for new customers only, at least they have the decency to change the name of the account by, for example, appending Issue 2 to the name. Sainsbury's told me I had to go through the hassle of closing my account and opening a new account with the identical name to enable me to join their first class customers. I think this is a really sneaky way of attempting to prevent existing customers from finding out that Sainsbury's is giving priority to new customers.
This smacks of laziness to me. That account is viewable online so the current interest rate is available to you. There's been far better rates available for a good while now. As said above, banks and other institutions do this quite regularly. Even without the addition of an issue number, to make it easier for the lazy, you are are lazy with your financial dealings and you should concentrate on that rather than trying to blame financial institutions.0 -
Sainsbury's are aiming to confuse you. The rate quoted on the site does not apply to everyone: it only applies to new customers. Depending on when you opened your account you may get a lower rate. I suggest you check with Sainsbury's as to what rate you're getting.You've confused me.
I have this account so thought I'd check Followed your link but all I can see is the single set of tiered-rate interest rates, apparantly for everyone with this account.
What rate are you getting and is it listed on the S site?0
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