Are Banks deliberately not telling us of rate reductions

mickW_2

I had an email from Bradford & Bingley with the new reduced rates 4 days ago yet their web site still show the old rates. Ive also checked a few others and they still show the old rates from 1.11.08. I know for a fact they have reduced them so I suspect people are being duped. I understand that if a rate cut is under 2% the bank does not have to tell the account holder so it is up to them to find out by whatever means. To me this is mass 'Deception'. I would urge no one to take a new account without checking on the rate and and 'Variable' rate account should be avoided. The bank will 'trick' the customer by offering a bonus saying its fixed for a year but in fact the main rate other than the bonus is variable so can drop whenever they decide. Ive read today that most of the banks will reduce their rates by at least 1.5% on 1st December 2008. So I reckon there are going to be some very irate customers when they find out. Banks will use all sorts of tactics to get your money. One example is Tesco Finance. They offer 6.51% but only the bonus is guaranteed so expect this being 5.01% very soon. Thats if they ever process your application. I waited a month and still they hadnt sorted it so Ive cancelled and stuck my dosh in Close Brothers 7% fixed rate bond (now closed to applicant).

mickW_2

A friend opened a Coventry 60 plus postal account q month ago at 6.6% with bonus guaranteed for a year. Guess what it is now? 4.65% - The banks are deceiving us. Beware.

mickW wrote: »

I had an email from Bradford & Bingley with the new reduced rates 4 days ago yet their web site still show the old rates. Ive also checked a few others and they still show the old rates from 1.11.08. I know for a fact they have reduced them so I suspect people are being duped. I understand that if a rate cut is under 2% the bank does not have to tell the account holder so it is up to them to find out by whatever means. To me this is mass 'Deception'. I would urge no one to take a new account without checking on the rate and and 'Variable' rate account should be avoided. The bank will 'trick' the customer by offering a bonus saying its fixed for a year but in fact the main rate other than the bonus is variable so can drop whenever they decide. Ive read today that most of the banks will reduce their rates by at least 1.5% on 1st December 2008. So I reckon there are going to be some very irate customers when they find out. Banks will use all sorts of tactics to get your money. One example is Tesco Finance. They offer 6.51% but only the bonus is guaranteed so expect this being 5.01% very soon. Thats if they ever process your application. I waited a month and still they hadnt sorted it so Ive cancelled and stuck my dosh in Close Brothers 7% fixed rate bond (now closed to applicant).

Lynt_3

mickW wrote: »

A friend opened a Coventry 60 plus postal account q month ago at 6.6% with bonus guaranteed for a year. Guess what it is now? 4.65% - The banks are deceiving us. Beware.

I think you'll find that the 4.65 is 60 plus post save (3)
The 6.6 was post save, and is still, according to their website, 6.6.

go to savings
savings rates
accounts no longer available
sixty plus post save

mickW_2

There was a new list of rates in the Mail today. Thats what I mean about the banks not updating the web sites. The 60 plus postal (3) was reduced on 1.11.08 from 6.6% to 6.1% and is now in the national press at 4.65%
Dont believe the web sites.

Lynt wrote: »

I think you'll find that the 4.65 is 60 plus post save (3)
The 6.6 was post save, and is still, according to their website, 6.6.

go to savings
savings rates
accounts no longer available
sixty plus post save

Stavros_3

Rates are going to plummet, a few months ago we were all talking about 7%+, now folks are scrambling round for 6% rates and thats b4 the 1.5% cut in interest rates. The writing is clearly on the wall, reputable analyists are predicting interest rates to be around 1% by next summer and advised to savers to grab the best fixed rate account that you can. Well its goodbye cash deposits for me, and into a 5+ yr investment strategy. When reputable investors like Warren Buffett and Anthony Bolton are buying back into equities is good enough for me to re-think my financial strategy and look elsewhere than cash deposits

Lynt_3

I'm getting confused now.
On their website, 60 plus post save (3) is shown as 4.65, but their 60 plus post save (presumably 1 ) is still 6.6.

and I am worried about what Egg are up to...

elektra

mickW wrote: »

I had an email from Bradford & Bingley with the new reduced rates 4 days ago yet their web site still show the old rates. Ive also checked a few others and they still show the old rates from 1.11.08. I know for a fact they have reduced them so I suspect people are being duped. I understand that if a rate cut is under 2% the bank does not have to tell the account holder so it is up to them to find out by whatever means. To me this is mass 'Deception'. I would urge no one to take a new account without checking on the rate and and 'Variable' rate account should be avoided. The bank will 'trick' the customer by offering a bonus saying its fixed for a year but in fact the main rate other than the bonus is variable so can drop whenever they decide. Ive read today that most of the banks will reduce their rates by at least 1.5% on 1st December 2008. So I reckon there are going to be some very irate customers when they find out. Banks will use all sorts of tactics to get your money. One example is Tesco Finance. They offer 6.51% but only the bonus is guaranteed so expect this being 5.01% very soon. Thats if they ever process your application. I waited a month and still they hadnt sorted it so Ive cancelled and stuck my dosh in Close Brothers 7% fixed rate bond (now closed to applicant).

I've just checked the website and it shows the Bradford & Bingley rates from 2nd November so believe these are the current rates.
http://www.bradford-bingley.co.uk/savings/product/index.asp

mickW_2

Best give em a ring. My friend will be transferring her balance into her 6.4% fixed rate Birmingham Mids postal account.

Lynt wrote: »

I'm getting confused now.
On their website, 60 plus post save (3) is shown as 4.65, but their 60 plus post save (presumably 1 ) is still 6.6.

and I am worried about what Egg are up to...

mickW_2

Was the postal account (1) a fixed rate?

mickW wrote: »

Best give em a ring. My friend will be transferring her balance into her 6.4% fixed rate Birmingham Mids postal account.

mickW_2

No Ive got an email account with them. They e mailed me with all the new rates (down 1.5%) the day after the BofE base rate reductiion and they havnt changed them on the web site. We know why dont we? So people dont withdraw their dosh. Ive taken mine out already and just got a 7% bond with Cloise Bros just in time.

elektra wrote: »

I've just checked the website and it shows the Bradford & Bingley rates from 2nd November so believe these are the current rates.
http://www.bradford-bingley.co.uk/savings/product/index.asp

Baldur

mickW wrote: »

The 60 plus postal (3) was reduced on 1.11.08 from 6.6% to 6.1% and is now in the national press at 4.65%

The 4.65% Issue 3 was only launched today, Issue 2 was the former product, introduced on 31/10/08 and withdrawn yesterday - which replaced the original 60 Plus Postsave.
https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=177975