One Account rates cut

Saran_2

The One Account has always had a slightly higher interest rate than the best deals around and this has been the price paid for having the most flexible product around. Up until 12 months ago, most if not all of the posters here would have wholeheartedly recommended it.

The gripe is with the interest rate policy. Those of use who have been with OA from around 2000 received letters promising to follow the BoE rate. They decided not to, widening their margin from 1.1% to 3.45% (for me). Several of us have asked the FOS to examine this and decide if it is fair.

The future is where the problem will come. When rates are back at 5% will you be happy paying 8.45%? OA have proven with their behaviour over the last 6 months that profit comes before the customer!

I'll be moving as soon as I can, but you would be brave to put your trust in OA now!

karanda

Summed up succinctly. Beware, as you will never, ever know where your interest rate will end up - RBS have made ad hoc increases, when there has been no change in the Bank Rate, and have not reduced where there have been downward changes in the Bank Rate.

I am one of the old Virgin One account "customers" - and I took out my mortgage based on the Virgin One offer. But I certainly would think long and hard about the RBS product now - you simply will never know from one month to the next what interest rate you will pay. However, if you are happy with that state of affairs of course, then it will be the ideal mortgage for you.

But I think there are other, more transparent and stable products out there in the market at the moment. I would not want to deal with a bank that has such an appalling track record - RBS simply does not offer any guarantee of decent, honest dealings with its customers.

I guess it is always down to the same old thing "let buyer beware". There have certainly been enough warnings now about the disgraceful behaviour of RBS, on this forum and in the press generally. As long as the Government allows banks to continue to dishonestly peddle their wares to the general public, people like me will continue to complain. Thank goodness.

orchid-96

I have just found this thread and can't believe I have been oblivious to this issue!! I have had my oa since 2006 so think that is post Virgin (I sort of assumed it was virgin at the time) I am only just becomming a bit more savvy with money so please don't shoot me down!!

I have no choice but to stay with oa as we could not get a mortgage right now...I do really like the flexibility of it, but unfortunately for the last 2 years I have not been able to reduce the outstanding amount at all (was meant to reduce at the end of each year but have not paid enough in)

I would welcome any advice as to how to work this account better - I currently have a different current account which the wages go into and pay all the dd's and I pay a set figure per week into the oa (have dipped in a bit recently though) so only use it as a mortgage...would I be better off using it as it is meant and paying wages in etc? Do you gain anything from having funds in there even if they rapidly disapear to pay bills? sorry for the stupid questions....

Spud_2

orchid-96 wrote: »

I have just found this thread and can't believe I have been oblivious to this issue!! I have had my oa since 2006 so think that is post Virgin (I sort of assumed it was virgin at the time) I am only just becomming a bit more savvy with money so please don't shoot me down!!

I have no choice but to stay with oa as we could not get a mortgage right now...I do really like the flexibility of it, but unfortunately for the last 2 years I have not been able to reduce the outstanding amount at all (was meant to reduce at the end of each year but have not paid enough in)

I would welcome any advice as to how to work this account better - I currently have a different current account which the wages go into and pay all the dd's and I pay a set figure per week into the oa (have dipped in a bit recently though) so only use it as a mortgage...would I be better off using it as it is meant and paying wages in etc? Do you gain anything from having funds in there even if they rapidly disapear to pay bills? sorry for the stupid questions....

Hi - I would say if you don't use the OA to the full advantage then yes, it is a totally overpriced account. Personally if I was you, I would be paying my salary in so at least the daily interest is affected when the credit goes in. You can also be a bit savvy by changing your direct debit dates, so if you get paid on 31st March, set your dd's to be say 29th April (and 29th thereafter) so your salary is in there for as long as possible before bills get paid. We originally had it as a mortgage only account, but since changing to a full current account mortgage, have seen the balance drop significantly.

Rachel_B_3

Spud wrote: »

Hi - I would say if you don't use the OA to the full advantage then yes, it is a totally overpriced account. Personally if I was you, I would be paying my salary in so at least the daily interest is affected when the credit goes in. You can also be a bit savvy by changing your direct debit dates, so if you get paid on 31st March, set your dd's to be say 29th April (and 29th thereafter) so your salary is in there for as long as possible before bills get paid. We originally had it as a mortgage only account, but since changing to a full current account mortgage, have seen the balance drop significantly.

We currently have the mortgage only type of account (meaning we can't access the account online). Is it easy to convert it into the full current account type? We can't really afford to get out right now - the same as many others.

Thanks.

Spud_2

Rachel_B wrote: »

We currently have the mortgage only type of account (meaning we can't access the account online). Is it easy to convert it into the full current account type? We can't really afford to get out right now - the same as many others.

Thanks.

Yes it was easy to go for the full current account mortgage - they do a lot of the admin for you then you'd need to do the usual switching over dd's etc.

oldjabez

"(Philip)Hampton will call for an end to the ‘public flogging’ of Royal Bank of Scotland, asking shareholders for ‘perseverance’." - Citywire 3rd April 2009.

Well Mr Hampton, perhaps when you treat your customers and shareholders with a little more respect your wish may be granted.:mad:

red789

Heard from the FO today. They cannot pursue the case yet becuase OA have not explicitiy said that we are at deadlock.

For others considering doing the same, you need to make sure that the letter from OA is worded correctly, which is to not say something helpful like - "However, if you wish to discuss this matter further with me".

As a bonus it should add by law, in the last paragraph, "you may refer this matter to the FO".

So, Ive requested all that from the OA. On we grind! Nice weather we are having though.

kippygirl

red789 - I've just got the same response from the FOS. I've no intention of not pursuing this to a formal complaint so I'm also going back to OA to continue my complaint there before, no doubt, returning to the FOS.

red789

Thanks for that kippy - I got the "final response" letter from the one account. In it they said they would take the chance to re-iterate the reasons for the rate, but interestingly came up with 2 completely new reasons and abandoned the old explanations. These were that the cost to them of making funds available for "this type of account" remain high, and that their rates remain competitive in the market.

I put that new explanations had arisen from the OA in their most recent letter and forwarded the pack back off to the FO.

Good luck with yours!

RED