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  • FIRST POST
    • stevem999
    • By stevem999 5th Oct 16, 6:44 PM
    • 161Posts
    • 73Thanks
    stevem999
    RBS One Account not dropped interest rate after BoE rate cut
    • #1
    • 5th Oct 16, 6:44 PM
    RBS One Account not dropped interest rate after BoE rate cut 5th Oct 16 at 6:44 PM
    Just wondered if there were any RBS One Account customers who had noticed that RBS have not reduced the interest rate after the August BoE rate cut. I know it isn't a tracker but is essentially an SVR product, yet on querying why the rate hasn't been reduced on 1st October in line with RBS SVR, I am told that it isn't a tracker mortgage but is a variable rate product and they have taken the decision not to change it because of market conditions! Yes, variable rate i.e. moves in line with the SVR of the company, so why no reduction?

    I recall they were happy to increase the rates immediately in the past! Surely it should be in line with their SVR?

    Would be good for customers to get together and maybe someone from MSE could take it up with RBS? Remember them? They're the bank that we all own!!
Page 1
    • ACG
    • By ACG 5th Oct 16, 6:51 PM
    • 13,499 Posts
    • 6,648 Thanks
    ACG
    • #2
    • 5th Oct 16, 6:51 PM
    • #2
    • 5th Oct 16, 6:51 PM
    The SVR and the bank of england base rate are different things. They are under no obligation to pass on the drop if it is not linked to the bank of England base rate.

    I used to work for RBS, I used to hate it when people used the "we own you" line when they did not get what they want. Im sure savers would prefer to get rates on their savings? OR you could argue that the more money the bank makes, the more the shares are worth and so when the govt does sell the shares they will get more money which could be invested in the NHS or clear some of those billions that as a country we owe.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • stevem999
    • By stevem999 5th Oct 16, 6:56 PM
    • 161 Posts
    • 73 Thanks
    stevem999
    • #3
    • 5th Oct 16, 6:56 PM
    • #3
    • 5th Oct 16, 6:56 PM
    Yes, I am aware that SVR and BoE base rate are different things, as can be seen from my post if read properly. What I am arguing is that RBS HAVE dropped their SVR with effect from 1st October, so have passed it on, but have not applied it to their One Account product.

    As a mortgage adviser I would hope you can see that. And making some big society argument about the value of shares for the country versus what the man in the street actually feels in their pocket is a bit wide-eyed isn't it?
    • waveneygnome
    • By waveneygnome 5th Oct 16, 6:57 PM
    • 190 Posts
    • 124 Thanks
    waveneygnome
    • #4
    • 5th Oct 16, 6:57 PM
    • #4
    • 5th Oct 16, 6:57 PM
    Unfortunately this is not new from the One Account:

    Search for

    'Interest rates for TheONE Account staying up'

    on the MSE forum search function.

    You'll see that this policy (of not following BoE base rate changes) came about in 2008.

    Some early holders of the One Account, took the complaints all the way through to the Financial Ombudsman Service....and some won compensation....but others didn't. I was one of the lucky ones.

    As an aside - the One Account is now really poor service/higher rates - you'd probably be better off moving to a different provider. None quiet like the One Account, but First Direct are good for offsets, but have fairly strict criteria of acceptance.
    • getmore4less
    • By getmore4less 5th Oct 16, 7:02 PM
    • 26,303 Posts
    • 15,809 Thanks
    getmore4less
    • #5
    • 5th Oct 16, 7:02 PM
    • #5
    • 5th Oct 16, 7:02 PM
    One Account has the reputation for being one of the poorer providers for offset* style products for years(probably the worst).

    the web site calculator used(may still) to double count the mortgage payment if you were not careful making it look really good.

    Not a lot you can do except get a better lender.

    * not really an offset product but similar model so ok for comparison.
    Last edited by getmore4less; 05-10-2016 at 8:17 PM.
    • ACG
    • By ACG 5th Oct 16, 7:09 PM
    • 13,499 Posts
    • 6,648 Thanks
    ACG
    • #6
    • 5th Oct 16, 7:09 PM
    • #6
    • 5th Oct 16, 7:09 PM
    You say you know they are different yet you discuss the 2 in your post. I was aiming to confirm they are different so no point comparing them to one another.

    The one account was originally started by Virgin wasnt it? So they could be honouring the original T&Cs applied for?

    You brought up how "we" own RBS. Its a pointless argument that has nothing to do with your issue.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • stevem999
    • By stevem999 5th Oct 16, 7:11 PM
    • 161 Posts
    • 73 Thanks
    stevem999
    • #7
    • 5th Oct 16, 7:11 PM
    • #7
    • 5th Oct 16, 7:11 PM
    Yes, I recall they were quick to increase and slow/never to reduce in the past but hoped that things might have changed given the changes in the banking industry over the last 8 years. How wrong! Seems especially churlish to lower their variable rate now though but not apply it to the One Account.

    No, I took out the mortgage with RBS, Virgin had sold it by then. I mention both rates because the SVR rate cut that RBS have made this week is directly linked to the BoE base cut. My argument is that this cut hasn't been applied to the variable rate One Account product.

    I really like the functionality of the account and the website (albeit it is showing its age nowadays) and the ability to use it to easily manage different pots of money, borrowings, savings etc and I don't think there is anything else that offers such things. The offset mortgages elsewhere are simply that.
    Last edited by stevem999; 05-10-2016 at 7:17 PM.
    • Thrugelmir
    • By Thrugelmir 5th Oct 16, 7:40 PM
    • 51,321 Posts
    • 43,155 Thanks
    Thrugelmir
    • #8
    • 5th Oct 16, 7:40 PM
    • #8
    • 5th Oct 16, 7:40 PM

    I really like the functionality of the account and the website (albeit it is showing its age nowadays) and the ability to use it to easily manage different pots of money, borrowings, savings etc and I don't think there is anything else that offers such things. The offset mortgages elsewhere are simply that.
    Originally posted by stevem999
    As a consequence the account itself costs more to operate. Totally different scenario to a repayment mortgage that's on SVR.

    With regards to RBS being taxpayer owned. Even more reason that services should be priced on a commercial basis. Not cross subsidised etc. Not that RBS is even making money. Since 2008 RBS has lost over £50 billion.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • getmore4less
    • By getmore4less 5th Oct 16, 8:25 PM
    • 26,303 Posts
    • 15,809 Thanks
    getmore4less
    • #9
    • 5th Oct 16, 8:25 PM
    • #9
    • 5th Oct 16, 8:25 PM
    Yes, I recall they were quick to increase and slow/never to reduce in the past but hoped that things might have changed given the changes in the banking industry over the last 8 years. How wrong! Seems especially churlish to lower their variable rate now though but not apply it to the One Account.

    No, I took out the mortgage with RBS, Virgin had sold it by then. I mention both rates because the SVR rate cut that RBS have made this week is directly linked to the BoE base cut. My argument is that this cut hasn't been applied to the variable rate One Account product.

    I really like the functionality of the account and the website (albeit it is showing its age nowadays) and the ability to use it to easily manage different pots of money, borrowings, savings etc and I don't think there is anything else that offers such things. The offset mortgages elsewhere are simply that.
    Originally posted by stevem999
    Not sure what you think the others don't have perhaps you could expand?

    Just as easy with other offset lenders.

    Eg. Barclays allow many accounts and ISA to be offset and can transfer between accounts instantly on line.

    it is better to not have CC in the pool because they are interest free anyway if managed properly.

    One account marketed better.
    • tracked
    • By tracked 15th Oct 16, 2:06 PM
    • 2 Posts
    • 0 Thanks
    tracked
    Unfortunately this is not new from the One Account:

    Search for

    'Interest rates for TheONE Account staying up'

    on the MSE forum search function.

    You'll see that this policy (of not following BoE base rate changes) came about in 2008.

    Some early holders of the One Account, took the complaints all the way through to the Financial Ombudsman Service....and some won compensation....but others didn't. I was one of the lucky ones.

    As an aside - the One Account is now really poor service/higher rates - you'd probably be better off moving to a different provider. None quiet like the One Account, but First Direct are good for offsets, but have fairly strict criteria of acceptance.
    Originally posted by waveneygnome
    Hi, when did you start your oneaccount, and why were you one of the lucky ones. I have an account and would like to know if I could also be eligible?
    • teabelly
    • By teabelly 21st Nov 16, 8:54 AM
    • 1,208 Posts
    • 1,080 Thanks
    teabelly
    They deliberately changed their terms and conditions in 2008 so they could basically ignore BOE rates if they were inconvenient. The minute they rise again I'd bet RBS will push them up further.

    I don't see how they can be allowed to use LIBOR as it was widely manipulated. This is the excuse they gave for why they pushed rates up when BOE was still low. Why aren't the FCA investigating all banks that were using it to set rates?

    They've also done a long overdue update to the online banking but I'm now locked out altogether. Anyone else not able to log in?

    I think they're making it is as awful as possible to try and push people off it.
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