Unnotifiable savings interest rate changes

skynflynt

I just received a change of conditions note for my M&S money ISA. One conditions states they only have to tell you they have changed the interest rate
30 days after the fact. I thought this unreasonable, and queried it - to be told that actually this was always the case, but people had complained, so they were changing the wording to make it explicit. I thought it was a basic principle for variable rate accounts that you were informed of changes before they happened - isn't this part of the banking code?? I was told the condition was standard for the industry. Any experts out there?

Pink.

Hi skynflynt,

You should get more replies on the Savings and Investment board, so I'll move your thread over there.

Pink

Mr_Mumble

skynflynt wrote:

I thought it was a basic principle for variable rate accounts that you were informed of changes before they happened - isn't this part of the banking code??

In one word.... no!

4.8 If you have a variable-rate savings account with £250
or more in it and the interest rate has fallen significantly
compared with the Bank of England base rate, we will
contact you within a reasonable period of time to:
• tell you that this has happened;
• tell you about our other savings accounts and offer
to help you to switch to one of these accounts if
you want to;
• tell you that you can withdraw all the money in your
account; and
• give you a reasonable period of time to switch to
another account or withdraw the money without any
notice period or any charges.

http://www.bankingcode.org.uk/pdfdocs/BANKING%20CODE.pdf