More 'carp' from the Britannia

apt

Prospective 'super mutual' Britannia is lowering most of its savings rates by 0.5% from 31 January unless the rate was already too close to zero to allow this. Best of a pretty bad lot, the Direct Saver Reserve, is down from 2.5% to 2%, but 3% for the first six months. It has even managed to squeeze the Regular Savings rate (excluding 3% bonus) down from 0.25% to 0.1%. Unless it is going to surprise savers with a generous reward payment, the society seems to be taking members' votes for granted in the upcoming merger ballot.

gozomark

2% is still higher than base rate....

baby_boomer

apt wrote: »

Unless it is going to surprise savers with a generous reward payment, the society seems to be taking members' votes for granted in the upcoming merger ballot.

I could do with a decent Members' Reward payout to add to my 7.5% and 7.0% fixed interest accounts .

No doubt the money will need to go elsewhere in due course.

withnell

gozomark wrote: »

2% is still higher than base rate....

Yes, but not higher than the high paying accounts of nearly every other financial institution!

Lansdowne

Why on earth should Britannia pay higher than the high paying accounts of nearly every other institution? That would put it in the company of Anglo, Icici and First of Nigeria: 'flounder' rather than 'carp'. Not sure that is where I would want BBS and/or Co-op to be.

withnell

Lansdowne wrote: »

Why on earth should Britannia pay higher than the high paying accounts of nearly every other institution?

Because if they don't then by definition they pay one of the lowest rates around. As a mutual, they should be paying at least as high rates as the big 5 banks - the membership reward makes up for the shareholder dividend

jack_spratt_2

That is a difficult one !!

To be honest there rates are no different from other Mutuals perhaps a little better on some of the accounts !! If you want to look at poor rates look at Nationwide or Norwich + Peterborough BS( who are offering a decent rate just to new money into the society).
My personal opinion is Mutuals are missing a trick at the moment !! Why do they not provide a better rate for existing members who have had membership of the society for a few years and promote the fact that they are rewarding loyalty and mutuality.

Its a bit of a shock when Nationwide are offering rates which are not as high on member reward bonds than other accounts

Milarky

jack_spratt wrote: »

Why do they not provide a better rate for existing members who have had membership of the society for a few years and promote the fact that they are rewarding loyalty and mutuality.

Because they keep changing their mind?.. Because they need to change to advertising periodically? (e.g. Nationwide might have to drop 'Proud to be different' - it's a bit worn out by reality?)..Because nailing your colours to to mast (as it were) can only allow you to be popular briefly and is costly of the bottom line?...Because, having no shareholders to stir up trouble, merely members with very limited voting power, the average mutual board member doesn't lose any sleep at night?

Bottom line.. mutuality isn't compatible with top ranking products/offers to individual customers. Thus banks 'cherry pick' and consumers 'tart' and both benefit. Who doesn't benefit is any passive bank customer or mutual member...

jack_spratt_2

Mutuals can and do pay class leading rates !! Yorkshire B S 3.75%, Chelsea have had some bonds with a good rate recently , Newcastle BS

Nationwide are now using


Solid,Stable,and Dependable are now the buss words with Nationwide

thor

Mutuals are always ready to trumpet their ability to pay the best rates because they do not need to pay shareholders so it is a pity that the britannia have so many pitiful offerings(much like the Nationwide)