Kaupthing fixed term: change in 'break rate'

notverymerrywidow

Hi all,

Has anyone else noticed the change in break rate from 6.15% to 0.00% ??

Sneaky.....:wall:

nzseries1

Mine says:

"Fixed term offers not currently available"
"Gross rate 4.46%" (regular savings, not fixed term)

Where does it say break rate? I'd be a bit annoyed if it dropped to 0%! I am 4 months of the way through a 12 month deal at 7.15%.

notverymerrywidow

Hi nz,

Break rate relates to KE's fixed term savings.

It is their term for the interest rate applicable if one makes an early withdrawal - i.e. 1% less than the stated interest rate, which for 1yr fixed was 7.15%

If you click on the + by your account number, it should come up.

Only applies if you withdraw early.

Sorry if I confused you.

nzseries1

notverymerrywidow wrote: »

Hi nz,

Break rate relates to KE's fixed term savings.

It is their term for the interest rate applicable if one makes an early withdrawal - i.e. 1% less than the stated interest rate, which for 1yr fixed was 7.15%

If you click on the + by your account number, it should come up.

Only applies if you withdraw early.

Sorry if I confused you.

I understand exactly what you mean... however I can't see where you can find the "break rate" written in internet banking? If I click + it doesn't come up the actual rate comes up, but not the break rate.

notverymerrywidow

nzseries1 wrote: »

I understand exactly what you mean... however I can't see where you can find the "break rate" written in internet banking? If I click + it doesn't come up the actual rate comes up, but not the break rate.

Hello again,

Just checked: on mine the break rate is on the line below the actual rate, and above the accrued interest.

Perhaps mine is different because I opened it after the ING takeover? Transferred from my pre-ING KE savings account; didn't know whether they would accept it.

At the time I didn't think I had anything to lose by trying, as the break rate was only 1% less!!

jingle68

notverymerrywidow wrote: »

Hi all,

Has anyone else noticed the change in break rate from 6.15% to 0.00% ??

Sneaky.....:wall:

why are you annoyed? you locked your savings in to get the high interest rate, why shouldnt you be penalised for not sticking to the 'fixed term'?

notverymerrywidow

Point taken, jingle 68, but it does seem a swingeing penalty compared with the mere 1% loss as stated in T&C's at the time of opening.

I object to the change without notification, rather than the amount per se and was seeking only to alert others.

My other FT accounts have a 90 day interest penalty.

I do, of course, hope I shall not need to access the money in an emergency.

nzseries1

jingle68 wrote: »

why are you annoyed? you locked your savings in to get the high interest rate, why shouldnt you be penalised for not sticking to the 'fixed term'?

Because it was in the terms and conditions when we signed up, that's why. We took out the fixed rate subject to certain terms and conditions. If those terms and conditions change, then we have a right to be unhappy.

cos69

I am not sure they can change the break rate without your consent, it was part of the original agreement so the interest rates that apply. Its no different to changing the 7.15% to zero.

The agreement being you get 7.15% for the full term and 6.15% for early withdrawl

notverymerrywidow

Hi nz and cos,

Thanks for your support.

Have just spoken to KE CS and apparently it's just a glitch as they're updating the website.....

They assured me the break rate remains at 1% below the term rate: phew, breathes sighs of relief!

Incidentally, call answered immediately by REAL person; I almost fainted from the shock!!