Nationwide - e-Savings Plus closure shock

PurpleBox

Just a word of warning.

I went to close my e-Savings Plus A/C yesterday having made no previous withdrawals and was shocked to find that on closure they will only pay interest at the lower rate of 0.10% rather than the current rate of 2.00% (and historical rates were higher so the difference is real)!

Needless to say I just transferred the balance and have left the account open with just £1, but it's a real pain to have to wait for the aniversary to get my interest before closing it.

Nationwide is sliding fast...

PurpleBox.

RayWolfe

It was clear from the utset that they were the terms. If you want higher rates than their normal e-savings, there will be conditions.

PurpleBox

RayWolfe wrote: »

It was clear from the utset that they were the terms. If you want higher rates than their normal e-savings, there will be conditions.

I disagree - the wording on their site is:-

Withdrawal arrangements:

Up to 3 free instant access withdrawals each year. Lower rates apply to customers making 4 or more withdrawals. The lower interest rate will apply for the full 12 months following opening or anniversary of opening. Funds can only be transferred online from e-Savings Plus to a FlexAccount on the Internet Bank.

There is no explicit mention of closure conditions at all.

I just feel that dispite their ad campaign they have joined the ranks of Abbey, A&L etc who try to be 'clever' with their T&C's. Even ING would not do this!

Their savings rates are no longer competitive.

PurpleBox.

Hazzanet

From here:

http://www.nationwide.co.uk/savings/legal.htm#esavingsplus

31. On closure, interest will be paid from the date the account was opened or the last interest payment date, whichever is most recent, to the date of closure at the lower rate in accordance with condition 21 above.

PurpleBox

Hazzanet wrote: »

From here:

http://www.nationwide.co.uk/savings/legal.htm#esavingsplus

31. On closure, interest will be paid from the date the account was opened or the last interest payment date, whichever is most recent, to the date of closure at the lower rate in accordance with condition 21 above.

Yes - I realise that the T&C's say this but I for one think that they should have included it in the account summary.

In my case the interest I'm waiting for is only about £150 and I'm not desperate for it, but this may not be the case for everyone - hence my "word of warning".

The reality for this product is that unless you close it the day after an aniversary date you will either have to wait up to one year for your interest or accept 0.10%.

This should be a 'key fact' in the summary box.

PurpleBox.

Hazzanet

PurpleBox wrote: »

Yes - I realise that the T&C's say this but I for one think that they should have included it in the account summary.

In my case the interest I'm waiting for is only about £150 and I'm not desperate for it, but this may not be the case for everyone.

PurpleBox.

The one side of me agrees that it's not clear because the blurb selling the account doesn't mention it. The other side of me says you shouldn't buy a product without reading the terms and conditions and these do make it clear as to what happens upon closure.

With this in mind, I'm respectfully sitting well and truly on the fence

orangeslimes

anyone know what happens to the interest rate if you reduce the balance to 0? This is also against the terms and conditions but I didn't know this until someone pointed it out of this forum - but the terms and conditions don't explain what happens if you do this.

bristolleedsfan

orangeslimes wrote: »

anyone know what happens to the interest rate if you reduce the balance to 0? This is also against the terms and conditions but I didn't know this until someone pointed it out of this forum - but the terms and conditions don't explain what happens if you do this.

I doubt if it was possible for balance to be reduced below 1.00

orangeslimes

bristolleedsfan wrote: »

I doubt if it was possible for balance to be reduced below 1.00

It is, or it was a month ago- because i did so.