Secret Savings Rates

Just_a_worker

Apologies if this is an old story but it was news to me, so maybe others might find my experience useful.

I recently visited my local cash ISA provider (Britannia Building Society) to see if they could improve on the 2 accounts I had with them – one was paying 1%, the other 1.3%. They told me that they had nothing better. So, with Martin’s help, I opened a new account that would pay me over 3%.

During the process of moving my money I had a phone call from Britannia – the sort where they try to persuade you to stay with them – and they asked me why I had decided to move.

Then, the caller told me that my account was marked to show that they could not discuss new accounts / interest rates with me and that this would have been the reason that I was not told of better opportunities by the branch. I agreed there and then that he could remove the marker and he was then able to tell me that I could have a better return rate.

Was I cross?! :mad: I have no knowledge of agreeing to this marker’s being set but it may have been by ticking (or not ticking) one of those little boxes at the bottom of an application form that asks if I mind being contacted by them for sales opportunities. Who knows? Certainly, not me.

I decided to move anyway. I felt really cheated.

So, if you are asking your building society if they have better rates and they say NOT, perhaps you should ask them if they’d be allowed to tell you if they had. There’s seems to be no other way of knowing what is really available.

I hope this helps someone. I've been a lurking forum-reader for far too long.

Reaper

If you opted for no marketing then that would stop the person phoning you from trying to persuade you to open a new account, but it should have no effect if you ask them what the best account is.

Personally I am constantly surprised how little knowledge branch staff have of the products they sell. I think the branch staff are more likely to have been ignorant than following policy.

ChuckCash

Just_a_worker wrote: »

I agreed there and then that he could remove the marker and he was then able to tell me that I could have a better return rate.

Just curious, did they tell you what the better rate actually was?
If so, did they really offer a secret rate, or was it just one of their advertised rates?

I'm all in favour of secret rates if they are higher... just so long as everyone knows about them

Joe_Bloggs

If you try http://www.fsa.gov.uk/tables/ you can compare financial products of numerous companies that choose to supply them details.
The Britannia Regular Saver ISA seems to pay 3.1% AER. As I read it you have to make twelve regular and equal payments by post or in branch, or you face a penalty of 3% interest.
This is an unnecessary, petty, bureaucratic condition. Given the recent increase of the cash ISA allowance for over 50s then those account holders will not be able to use the full cash ISA allowance without the interest penalty.

It feel that the original poster was lied to and no computer marker can make up for that.
J_B.

Reaper

Joe_Bloggs wrote: »

The Britannia Regular Saver ISA seems to pay 3.1% AER. As I read it you have to make twelve regular and equal payments by post or in branch, or you face a penalty of 3% interest.

As I read it you can pay by direct debit too. From their web site:

"You can start a Regular Saver Cash ISA with as little as £20. And it’s easy too. Once we’ve set up a Direct Debit, you get to sit back and watch your savings flourish..."

I think when they say operate by post or branch they mean to withdraw the money.

Joe_Bloggs

On reading the terms and conditions you are allowed to make an additional one off payment to use up more of your full ISA allowance. So there is one point of flexibility in what seems a harsh and inflexible scheme.
They also do not allow transfers in. This, and many other conditions, from other ISA suppliers, are an obstacle for the consumer to battle through to get value, in the cash ISA market place.

J_B.

Just_a_worker

ChuckCash wrote: »

Just curious, did they tell you what the better rate actually was?
If so, did they really offer a secret rate, or was it just one of their advertised rates?

I'm all in favour of secret rates if they are higher... just so long as everyone knows about them

Once he'd made a big deal of 'removing the marker' he gave me a rate. I can't remember what he offered as I was too cross that I had been messed about (and lied to, as one responder suggests). It wasn't as good as the 3.5% that I was about to get at Abbey.

And, yep, I agree about secret rates being good - as long as we all know, but sadly, I'm pretty sure this wasn't that good a secret