One Account rates cut

Dualcyclone

Brice wrote: »

Talking about financial trouble, RBS has potentialy lost 601 millions in the latest financial scandal:
http://newsvote.bbc.co.uk/1/hi/business/7783236.stm

Are the Onaccount clients going to refund that as well?

It is annoying how someone can get away with this relatively scot free! 20 years in prison with a $5m fine - considering how much this guy is worth.

But I guess, unless he lives beyond 90, he won't see the light of day again; but that shouldn't mean that the investors shouldn't have a vested interest in Madoff's estate; he should be found personally liaible if he will be found guilty of fraud!

jammydodger0905

SO can anyone tell me if it is worth getting a ONE Account when I am due to re-negotiate my mortgage? According to their website "mortgage shrinker", in theory I would be able to pay my mortgage off within 7 years! What's the catch?

Thank you!

bunking_off

jammydodger0905 wrote: »

SO can anyone tell me if it is worth getting a ONE Account when I am due to re-negotiate my mortgage? According to their website "mortgage shrinker", in theory I would be able to pay my mortgage off within 7 years! What's the catch?

Thank you!

This is a difficult question. I think most of the posters on this thread would still be advocates of the "current account mortgage" concept as a mechanism to change your outlook on your finances. If it doesn't, though, and you operated a One Account as a conventional mortgage, then it certainly isn't the way to go.

Take a look at this and this thread for some of the arguments. As a broad brush, I'd say that of you have money left at the end of the month, or you expect your salary to grow in time, a current account mortgage may be the way to go. If you don't, definitely not. Plus it's pretty easy to get in trouble if you're not the sort who keep a close eye on your finances.

As to the One Account itself, well I think the issue is that before this sorry episode, I would have always rounded off any comments with "plus they have the best customer services I've experienced in any walk of life, so unthinkably good for a bank." They've blotted their copy book on that now...on the whole I'd probably recommend, but only guardedly so.

Before you give it too much thought, better check if they're still accepting applications anyway...earlier in this thread it was reported they weren't, but it wasn't clear (a) whether it was a temporary meause while they contemplated their navels, and (b) whether it applied to direct applications, or just via financial advisors.

karanda

jammydodger0905 wrote: »

SO can anyone tell me if it is worth getting a ONE Account when I am due to re-negotiate my mortgage? According to their website "mortgage shrinker", in theory I would be able to pay my mortgage off within 7 years! What's the catch?

Thank you!

The huge catch is that you will never, ever be sure with the "new" One Account what interest rate you will actually be charged. RBS have the right, they say, to move interest charged to you up or down at any time, by any amount, they want to. I certainly would never recommend this account, particularly as their Customer Service and customer communication is so dramatically poor.

Those of us who have had this account since the very beginning have other issues with RBS. We signed up with an account where specific promises were made, and a code of conduct followed. It was a delight to deal with Virgin One. Basically, this bank did what it said on the tin. We all recommended this account to friends and families. During the Virgin One period, interest rates when up, and down. Virgin One always acted promptly - you knew exactly where you were with them.

This began to change when RBS took 100% control, and the downward slide has been continual. It now ranks as one of the worst, and least honest, banks in the UK. Many of us have cases of complaint against this bank with the Financial Ombudsman. If you can, wait until the results are made public.

If you can't wait, consider your options very carefully indeed before you commit to this bank.

Yorkshire_Bred

Just heard Richard Branson is on BBC five live at 1: 30 if anyone has any question
for him........ Get in touch with your thoughts and views by calling 0500 909 693, texting 85058 or emailing [EMAIL="mayo@bbc.co.uk"]mayo@bbc.co.uk[/EMAIL]

goodnightvienna_2

karanda wrote: »

The huge catch is that you will never, ever be sure with the "new" One Account what interest rate you will actually be charged. RBS have the right, they say, to move interest charged to you up or down at any time, by any amount, they want to. I certainly would never recommend this account, particularly as their Customer Service and customer communication is so dramatically poor.

Those of us who have had this account since the very beginning have other issues with RBS. We signed up with an account where specific promises were made, and a code of conduct followed. It was a delight to deal with Virgin One. Basically, this bank did what it said on the tin. We all recommended this account to friends and families. During the Virgin One period, interest rates when up, and down. Virgin One always acted promptly - you knew exactly where you were with them.

This began to change when RBS took 100% control, and the downward slide has been continual. It now ranks as one of the worst, and least honest, banks in the UK. Many of us have cases of complaint against this bank with the Financial Ombudsman. If you can, wait until the results are made public.

If you can't wait, consider your options very carefully indeed before you commit to this bank.

I've only just discovered this forum so aplogies if this point has has been made before. Like many other people I have been a One account customer since the days when Virgin ran it and I was it's biggest fan - recommended it to numerous friends and family.

I am still a customer of Virgin Money for other products such as travel insurance and credit card and I can;t believe they are still happy to have their name all over a account which is breaking the promises made so clearly over the years (my credit card says Virgin as do all my statements and lettters). It strikes me that they have kepy uncharacteristically quiet about RBS's antics. Has anyone asked then how they feel about what's being done in Virgin's name? If not perhaps that's another way of getting our grievances out in the public.

Lovetheoneaccount

[

At the end of it, I guess our product is still relatively competative; however the only winner out of all this is RBS, who's profit margin has doubled in a year![/quote]


How has their profit margin doubled. It has gone up 1% over Base Rate but LIBOR is 1.10% higher than Base Rate.

On that basis we owe them 0.10%

Never mind will probably be moaned at for the post - no one seems to like the truth on this forum

Nail_Lad

Just had a letter stating another 1% would be taken off the rate. This in addition to the 1% rate cut a week or so ago.

Northern_Troll

Lovetheoneaccount wrote: »

[

At the end of it, I guess our product is still relatively competative; however the only winner out of all this is RBS, who's profit margin has doubled in a year!

How has their profit margin doubled. It has gone up 1% over Base Rate but LIBOR is 1.10% higher than Base Rate.

On that basis we owe them 0.10%

Never mind will probably be moaned at for the post - no one seems to like the truth on this forum[/quote]


Since you have lit the blue touch paper I am more than prepared to enter the debate......

I do not begrudge any company in the UK making a profit - in business that is what they are there to do, and any business making a profit in these trying times should be applauded, not ridiculed.

Whilst it is within our interest for the RBS to profit and do well, we should not forget what led the country into the credit crunch and what has led the RBS to make the decisions it has made.

It is widely acknowledged that the credit crunch, and RBS problems, were casued by the bad investments in packaged debt from the USA. During the boom years, the investment teams of our financial institutions, including the RBS, clambered for more business whilst totally oblivious to any risk that existed - the one desire that did not change throughout was the desire to increase their own bonuses and share options.
:EasterBun
Fast forward to the current climate, where their greed has brought the economy to the edge of collapse - rather than being taken out and publicly flogged, these same individuals now turn on their loyal customers to keep bailing them out of the dung heap. Despite this, they are still forced to go to Mr wibbly-wobbly Brown, who invests in a 58% stake of the RBS, using taxpayers cash - and do they then change their attitudes towards the loyal followers?

The answer to that is, sadly, contained within the many strings of this forum. The fact is, they made bad decisions, have been bailed out without any recourse, and are still screwing us 1.0% above where we were 12 months ago - with attitudes like that it is little wonder that there is no trust between the banks to lend each other money to get the economy moving - would you lend the RBS money? ILoveTheOneAccount would, but I think we all know who he/she represents !!!

Brice

The minutes of the last Monetary Policy Committee meeting that UK interest rates would fall further in the months ahead.

http://newsvote.bbc.co.uk/1/hi/business/7787223.stm

We could imagine that the BOE interest rate could be cut very close to zero in 2009 like in the US.
Now, how the OneAccount is going to react to that ? ....