Investec Hi-5 Account - how will new rules affect it?

celsworth

Hello!

I recently opened an Investec Hi-5 account and am thoroughly satisfied with it. Today I read a news story on the BBC (I won't be able to post the link being a newbie) about savers suffering from low interest rates etc, but the interesting and relevant bit was this quote:

quote-
Michelle Slade of Moneyfacts said that savers were already experiencing some of the lowest rates ever.

She suggested that providers had lowered rates ahead of new regulations, which came into force at the start of November, that mean providers must give two months' notice before they cut interest rates.
-endquote

Providers must give two months notice before cutting rates? Anyone know how this will affect the Investec account which changes weekly, whether it's up or down? I've not had any notification from them about any changes to the operation of the account. There's nothing new in the terms and conditions or anything on their site either.

Anyone know what the score is?

Cheers

Paul_Herring

How do Investec currently notify savers of the current interest rate?

A strict reading of the rules would probably require them to notify all savers every time the rate decreased.

Though whether this should be by snail-mail, adverts in obscure papers (as is current practise from other banks) or by other methods, I'm not too sure.

Ian_W

From timesonline (bold added):

From tomorrow, anyone with an instant-access savings account or current account will have to be told two months ahead of any reduction to their interest rate, under section 42 of the PSR.

The High5 account has a 3 months notice period for withdrawals or closure, so isn't AFAIK affected.

How do Investec currently notify savers of the current interest rate?

Again AFAIK, only through their website, but as it is liable to change up or down on a weekly basis I don't know if any other method would be practical. The ability to link to the average of the best 5 interest rates over several categories on moneyfacts is the main reason for having the account IMO.