Manchester BS Premier ISA 45 rate cut

will-in-estoril

With effect from today the rate on this account has been cut to 3.26%. Still not a bad deal, but following their own trend (!) and that of other cash ISA providers recently.

geoff_s---r

will-in-estoril wrote: »

With effect from today the rate on this account has been cut to 3.26%. Still not a bad deal, but following their own trend (!) and that of other cash ISA providers recently.

... but watch the small print "Rates shown include a 0.8% bonus, payable for the first 12 months from account opening" (Last week their rates were 3.56%)

That's only 2.26% + 0.8% after a year, but they might continue reducing the rate & using the 0.8% to handcuff new customers for a year.

Having just invested I'm a tad suspicious that their plan was....
1) Net batch of new customers with a short period of a juicy rate (get near top of best buy lists)
2) Trap new customers with 25% of the interest rate only paid after 12 months
3) When they've a net full of customers, start reducing rates, they won't leave for at least a year.

We can only wait & see if the Manchester BS are just cynically playing the system and abusing their new customers.
If they run the same trick with their next ISA product, or continue reducing rates on this one, we'll know how trustworthy they are.
They keep boasting that their customers own this BS, so hopefully they will play fair.

geoff_s---r

geoff_soper wrote: »

We can only wait & see if the Machester BS are just cynically playing the system and abusing thier new customers.

Also worth mentioning is that this product it's called 'ISA 45' as you have to give 45 days notice to escape, another worrying sign that the product might have been deliberately launched to fish for a netful of trapped new customers before cynically reducing rates. We'll see.

mundu

This was my first ISA and I put £1250 in it. Is there any point in me moving or should I just wait it out for the 12 months?

Baldur

mundu wrote: »

This was my first ISA and I put £1250 in it. Is there any point in me moving or should I just wait it out for the 12 months?

Your choice.

3.26% is still a pretty good rate, if you compare it with other 'best buy' Cash ISAs.

Zebra

Baldur wrote: »

Your choice.

3.26% is still a pretty good rate, if you compare it with other 'best buy' Cash ISAs.

Being reduced to 2.71% from 7th December.

Baldur

Zebra wrote: »

Being reduced to 2.71% from 7th December.

Then that's the date for which to instruct any transfer to take place - 43 days away, so plenty of notice for both providers.

mundu

So what would the correct procedure be? Contact them new ISA provider and instruct them to transfer the money?

Kent, Northen Rock and The Post Office would be the 1 year fixed ones for me but are you allowed to put more money into the account if you haven't used your ISA allowence up for the year yet?

Baldur

mundu wrote: »

So what would the correct procedure be? Contact them new ISA provider and instruct them to transfer the money?

Yes, complete the new provider's ISA transfer form - they must arrange the transfer.

Kent, Northen Rock and The Post Office would be the 1 year fixed ones for me but are you allowed to put more money into the account if you haven't used your ISA allowence up for the year yet?

Depending on the Terms & Conditions of the particular account, yes.