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  • FIRST POST
    • hybernia
    • By hybernia 8th Jul 17, 9:55 AM
    • 207Posts
    • 178Thanks
    hybernia
    West Brom: why bother with 'variable' accounts
    • #1
    • 8th Jul 17, 9:55 AM
    West Brom: why bother with 'variable' accounts 8th Jul 17 at 9:55 AM
    Just back from holiday and OH and I have received an email from West Brom Building Society that the interest rate on our "WeBSave Bonus Saver 2" has been reduced, effective July 3rd.

    We went through no little hassle to open that account as a joint account in early April, at which time the building society's offer was 1.05% gross p.a. up to May 31st 2018. The account also rated a best buy mention here on MSE.

    Now, less than 4 months after account opening, the rate is 0.95%. (Presumably also 'variable', though the email doesn't say so.)

    I accept that 'variable' means just that, but to discover that barely a quarter of the way into the offered 12-month 1.05% rate the building society can blithely renounce that promise is irritating to say the least.

    Makes one wonder if there's any point in MSE running 'Best Buy' savings lists where a headline product is capable of being substantially. . . varied . . . within so comparatively short a time of being offered.

    In fact: shouldn't this kind of practice be prohibited by the regulator, seeing as how 'variable' is very obviously a built-in canceller of any interest rate promise from any financial institution?

    As for West Brom, we'll shut the account and steer clear of it in future. Savers can be 'variable' too in where they put their money.
Page 1
    • xylophone
    • By xylophone 8th Jul 17, 10:25 AM
    • 21,994 Posts
    • 12,686 Thanks
    xylophone
    • #2
    • 8th Jul 17, 10:25 AM
    • #2
    • 8th Jul 17, 10:25 AM
    As for West Brom, we'll shut the account and steer clear of it in future. Savers can be 'variable' too in where they put their money.
    Is WB bovvered?
    • hybernia
    • By hybernia 8th Jul 17, 10:36 AM
    • 207 Posts
    • 178 Thanks
    hybernia
    • #3
    • 8th Jul 17, 10:36 AM
    • #3
    • 8th Jul 17, 10:36 AM
    Is WB bovvered?
    Originally posted by xylophone
    Perhaps you could take even more time out from playing with your instrument to pose that question as a separate topic?
    • TheShape
    • By TheShape 8th Jul 17, 10:44 AM
    • 961 Posts
    • 703 Thanks
    TheShape
    • #4
    • 8th Jul 17, 10:44 AM
    • #4
    • 8th Jul 17, 10:44 AM
    I think you've misunderstood the t&c's of the product in question.

    The only part of the rate that is fixed until 31st May 2018 is the 0.35% unconditional bonus. The product rate itself is variable.

    https://www.google.co.uk/url?sa=t&source=web&rct=j&url=http://www.westbrom.co.uk/media/WBBS/Files/PDFs/TCs/Savings%2520Product%2520Specific/Online/TCs_WeBSave_Bonus_Saver_2_Service_Specific_Feb_17. ashx&ved=0ahUKEwiMmtuwsPnUAhXlJcAKHW8HBusQFgg3MAQ& usg=AFQjCNE3S0qcRNKzfQckqSRN-Zt-bpzPHw

    The redirected link is safe, will download the product t&cs
    Last edited by TheShape; 08-07-2017 at 10:46 AM.
    • PeacefulWaters
    • By PeacefulWaters 8th Jul 17, 11:19 AM
    • 6,580 Posts
    • 8,072 Thanks
    PeacefulWaters
    • #5
    • 8th Jul 17, 11:19 AM
    • #5
    • 8th Jul 17, 11:19 AM
    Try the big providers who have top easy access rates of 0.25%.

    Variable means variable. They never guaranteed you 1.05% for the year.
    • xylophone
    • By xylophone 8th Jul 17, 11:27 AM
    • 21,994 Posts
    • 12,686 Thanks
    xylophone
    • #6
    • 8th Jul 17, 11:27 AM
    • #6
    • 8th Jul 17, 11:27 AM
    Perhaps you could take even more time out from playing with your instrument to pose that question as a separate topic?
    Sadly, I no longer have an instrument - would you lend me yours? (A violin, I assume.....)
    • talexuser
    • By talexuser 8th Jul 17, 11:48 AM
    • 2,202 Posts
    • 1,669 Thanks
    talexuser
    • #7
    • 8th Jul 17, 11:48 AM
    • #7
    • 8th Jul 17, 11:48 AM
    If you think you had problems opening a joint, try opening a power of attorney account as I did. Just move on to the next - if you want the dough put in the effort.
    • jimjames
    • By jimjames 8th Jul 17, 11:53 AM
    • 11,900 Posts
    • 10,283 Thanks
    jimjames
    • #8
    • 8th Jul 17, 11:53 AM
    • #8
    • 8th Jul 17, 11:53 AM
    Try the big providers who have top easy access rates of 0.25%.

    Variable means variable. They never guaranteed you 1.05% for the year.
    Originally posted by PeacefulWaters
    Or open current accounts where you can get instant access 3-5%
    Remember the saying: if it looks too good to be true it almost certainly is.
    • msallen
    • By msallen 8th Jul 17, 12:12 PM
    • 482 Posts
    • 407 Thanks
    msallen
    • #9
    • 8th Jul 17, 12:12 PM
    • #9
    • 8th Jul 17, 12:12 PM
    The difference between 1.05% and 0.95% interest is £1.00 per year per £1,000 in the account. As you state that it is barely a quarter of the way through the year then the reduction is costing you approximately 75p per £1,000.

    If you had the maximum £85,000 FSCS limit in this account, this change is costing you a little over £60.

    Is it worth going through "no little hassle" again to move your cash elsewhere?
    • badger09
    • By badger09 8th Jul 17, 12:44 PM
    • 5,074 Posts
    • 4,273 Thanks
    badger09
    Just back from holiday and OH and I have received an email from West Brom Building Society that the interest rate on our "WeBSave Bonus Saver 2" has been reduced, effective July 3rd.

    We went through no little hassle to open that account as a joint account in early April, at which time the building society's offer was 1.05% gross p.a. up to May 31st 2018. The account also rated a best buy mention here on MSE.

    Now, less than 4 months after account opening, the rate is 0.95%. (Presumably also 'variable', though the email doesn't say so.)

    I accept that 'variable' means just that, but to discover that barely a quarter of the way into the offered 12-month 1.05% rate the building society can blithely renounce that promise is irritating to say the least.

    Makes one wonder if there's any point in MSE running 'Best Buy' savings lists where a headline product is capable of being substantially. . . varied . . . within so comparatively short a time of being offered.

    In fact: shouldn't this kind of practice be prohibited by the regulator, seeing as how 'variable' is very obviously a built-in canceller of any interest rate promise from any financial institution?

    As for West Brom, we'll shut the account and steer clear of it in future. Savers can be 'variable' too in where they put their money.
    Originally posted by hybernia
    On the other hand, Ford Money have increased the rate on their Flexible Saver from 1% to 1.07%, less than 2 months (I think) from the launch of the account.

    http://forums.moneysavingexpert.com/showthread.php?t=5676290

    Variable rate accounts, are, well variable
    • roddydogs
    • By roddydogs 8th Jul 17, 12:54 PM
    • 5,870 Posts
    • 2,440 Thanks
    roddydogs
    Put it all in Ulster Bank, 1.25% & it's a true faster payments, not this next day faffing!
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