Barclays Monthly Savings Account

Consumerist

Just a quick heads up for anyone applying for this account.

In my opinion, the amount of interest paid on this account is significantly overstated on the Barclays web site

At the foot of the page is the following statement :–

" † Interest is calculated on the daily balance of the account, and is paid on the 1st working day of the month. For example, if you saved £250 per month for the whole 12 month term of the account, you will get back your deposits totalling £3,000 (12 x £250), and will have received in total approximately £124 gross interest during the year (provided no withdrawals are made during the year and the first deposit of £250 is made on the day the account is opened and subsequent deposits on the same date monthly thereafter)."

According to my spreadsheet evaluation (using 6% AER), it should be more like £95.78 (being £76.62 net interest + £19.16 of monthly tax deductions during the year.

Could anyone confirm either their figure or mine ?
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atypical

Martin's calculator works it out as £96.63. Very odd.

Consumerist

atypical wrote: »

Martin's calculator works it out as £96.63. Very odd.

I think that may be correct for yearly-paid interest (i.e. no tax deductions during the year).
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Tibbledom

They forgot to update the £124 figure when the interest rate dropped from 7.75%.

I contacted Barclays through their website to say they should update this figure many weeks ago but they have failed to do so. Poor show Barclays.

Edit: It was first noticed by joe65 see this post

Consumerist

Tibbledom wrote: »

Edit: It was first noticed by joe65 see this post

Sorry, I hadn't noticed that the point had already been raised. But serves, anyway, to keep the misinformation in mind for the unwary.
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Tibbledom

Consumerist wrote: »

Sorry, I hadn't noticed that the point had already been raised

Not at all. I was very pleased to see you highlight the point that Barclays still hadn't changed what is mis-leading information (albeit most people look at the interest rate only).

Thanks for doing that :T

Consumerist

I wonder whether the regulator might decide that Barclays should pay the gross interest advertised (£124) if a depositor had a printed and dated copy of the web page in support of a complaint.

Tibbledom

I rang Barclays up yesterday on a freephone number I had for them.

Suggested they changed the mis-leading info very quickly or I would complain to the FSA about mis-leading advertising. The customer care team were not remotely interested, but transferred me to the Barclays main internet call centre. There I spoke to a very helpful lady called Dibya.

Either that or something else has done the trick. Barclays have at long last updated the figure to show £96 today.

Consumerist

Tibbledom wrote: »

Barclays have at long last updated the figure to show £96 today.

Bravo !

Amazing what the threat of the regulator can sometimes do.
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