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  • FIRST POST
    • picks
    • By picks 17th Mar 17, 12:05 PM
    • 134Posts
    • 49Thanks
    picks
    Sainsbury's bank covertly rewarding new customers
    • #1
    • 17th Mar 17, 12:05 PM
    Sainsbury's bank covertly rewarding new customers 17th Mar 17 at 12:05 PM
    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.
Page 1
    • Elijah Bailey
    • By Elijah Bailey 17th Mar 17, 12:29 PM
    • 58 Posts
    • 42 Thanks
    Elijah Bailey
    • #2
    • 17th Mar 17, 12:29 PM
    • #2
    • 17th Mar 17, 12:29 PM
    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.
    • jamei305
    • By jamei305 17th Mar 17, 12:44 PM
    • 169 Posts
    • 197 Thanks
    jamei305
    • #3
    • 17th Mar 17, 12:44 PM
    • #3
    • 17th Mar 17, 12:44 PM
    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.
    • alanq
    • By alanq 17th Mar 17, 1:01 PM
    • 3,474 Posts
    • 2,223 Thanks
    alanq
    • #4
    • 17th Mar 17, 1:01 PM
    • #4
    • 17th Mar 17, 1:01 PM
    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.
    Originally posted by jamei305
    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.
    I'm a Board Guide on the Budgeting and Bank Accounts, Savings & Investments, Food Shopping and Over 50s MoneySaving boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    • picks
    • By picks 17th Mar 17, 2:06 PM
    • 134 Posts
    • 49 Thanks
    picks
    • #5
    • 17th Mar 17, 2:06 PM
    • #5
    • 17th Mar 17, 2:06 PM
    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.
    Originally posted by jamei305
    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.

    I think MSE should lobby the FCA to ban this practice as deception.
    Last edited by picks; 17-03-2017 at 3:56 PM. Reason: spelling clarification
    • G_M
    • By G_M 17th Mar 17, 5:54 PM
    • 38,852 Posts
    • 44,082 Thanks
    G_M
    • #6
    • 17th Mar 17, 5:54 PM
    • #6
    • 17th Mar 17, 5:54 PM
    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?
    • ermine
    • By ermine 17th Mar 17, 6:02 PM
    • 529 Posts
    • 745 Thanks
    ermine
    • #7
    • 17th Mar 17, 6:02 PM
    • #7
    • 17th Mar 17, 6:02 PM
    I think MSE should lobby the FCA to ban this practice as deception.
    Originally posted by picks
    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!
    • isasmurf
    • By isasmurf 17th Mar 17, 6:09 PM
    • 1,567 Posts
    • 578 Thanks
    isasmurf
    • #8
    • 17th Mar 17, 6:09 PM
    • #8
    • 17th Mar 17, 6:09 PM
    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?
    Originally posted by G_M
    All the interest rates are here
    • King Of Fools
    • By King Of Fools 17th Mar 17, 10:28 PM
    • 1,545 Posts
    • 588 Thanks
    King Of Fools
    • #9
    • 17th Mar 17, 10:28 PM
    • #9
    • 17th Mar 17, 10:28 PM
    All the interest rates are here
    Originally posted by isasmurf
    It is surprising they have so many variations. You would have expected anything older than a year to be on the same rates.

    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.
    • markwilkinson
    • By markwilkinson 17th Mar 17, 11:44 PM
    • 556 Posts
    • 941 Thanks
    markwilkinson
    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.
    Originally posted by picks
    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.
    • picks
    • By picks 18th Mar 17, 12:35 AM
    • 134 Posts
    • 49 Thanks
    picks
    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?
    Originally posted by G_M
    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.
    Last edited by picks; 18-03-2017 at 12:36 AM. Reason: spelling & grammar
    • isasmurf
    • By isasmurf 18th Mar 17, 6:18 AM
    • 1,567 Posts
    • 578 Thanks
    isasmurf
    Sainsbury's are aiming to confuse you.
    Originally posted by picks
    No they're not. If I remember from when I had a SB account, they write to you at least 2 months ahead of a rate change and again just before to tell you what your rate is.

    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.
    Originally posted by picks
    Or, just look on the link I provided earlier, or even better, just log on to your account where it will show you your interest rate.


    It would be nice if variable rate savings accounts had the same interest rate for all customers, but I can probably count on one hand the number of banks and building societies that do that and the rates are usually poor. This 'issue' malarky is a relatively recent introduction to savings accounts over the last 15 years or so, and one that doesn't help. They've become more prevalent in recent years to replace introductory bonuses which have largely disappeared after being more heavily regulated. I often need to look up what issue number I have, but can always remember when I opened an account.

    This practice used to be common practice. It remains the practice of the largest savings banking group, Lloyds Banking Group/Halifax Bank of Scotland, of which Sainsbury's Bank used to be part and who probably still use the same IT platform or it has developed organically from it, to not have issue numbers but offer different interest rates depending on date opened.
    Last edited by isasmurf; 18-03-2017 at 6:42 AM.
    • picks
    • By picks 18th Mar 17, 12:06 PM
    • 134 Posts
    • 49 Thanks
    picks
    No they're not. If I remember from when I had a SB account, they write to you at least 2 months ahead of a rate change and again just before to tell you what your rate is.
    Originally posted by isasmurf
    Let's get it right.
    The good news is: they write to you to warn you your rate will reducing.
    The bad news is: they don't write to you when they offer new customers on exactly the same named account as yours a better rate than you. They make an effort to stop you finding this out. In fact they go to some lengths to hide the information from existing customers.

    In my own case I was warned that the tiered rates on my account were reducing in 1 February 2017. However they hid from me the fact that just a few days after this they offered new customers a significantly better rate for exactly the same account. It was only by chance I found out their deception. When I challenged them they admitted new customers got the better rate and they refused to increase my rate to match their offer to new customers. All they would offer is that I could close my eSaver Special, apply for a new account identically called eSaver Special and move my money into the same named but higher rate account. I asked them if they were planning to write to all existing eSaver Special account holders about the better rate being offered to new customers they said no.
    Or, just look on the link I provided earlier, or even better, just log on to your account where it will show you your interest rate.
    Originally posted by isasmurf
    Sure, you can log in and find the rate you are getting. However, since the rate is a tiered rate, you only know it for your current balance and they give you no idea of the rates for other tiers.
    It would be nice if variable rate savings accounts had the same interest rate for all customers, but I can probably count on one hand the number of banks and building societies that do that and the rates are usually poor.
    Originally posted by isasmurf
    I think you're missing the point. I have savings accounts with many providers offering a variety of interest rates. However, in many years of operating scores of accounts with dozens of different providers I've never before encountered any provider giving the identical savings account name different rates of interest solely depending on who the customer is. With all other providers, if they offer a different interest rate to some customers (eg new customers), they give the savings account a different name, typically appending something like Issue 2 to the account name. It's only Sainsbury's that cheat and offer different rates for the identically named account.
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