Birmingham MidShires warning

macadamia_2

Please be aware that the withdrawal terms noted on their website are incorrect - and they know it. I called them on Saturday 28 November and they advised me that the correct terms (for a 5 year fixed term bond) are 365 days loss of interest; not the 90 days loss of interest stated on their website. Very dishonest IMO.

atypical

If this was the case it has since been changed:

http://www.askbm.co.uk/savings/p/fixed/product.asp?id=310&p=terms

Had this mistake been in the T&Cs you sign it was probably in your interest not to tell them about their mistake. I imagine they'd have to honour the 90 days they'd mistakingly put.

Stompa

Though here:

http://www.askbm.co.uk/savings/p/fixed/faq/intro.asp

it states:

Can I make a withdrawal from this account?
If the Fixed Rate Bond is below 2 years no withdrawals are allowed. For Fixed Rate Bonds that are 2 years and over, you can make withdrawals subject to 90 days loss of interest on the amount withdrawn.

noh

atypical wrote: »

If this was the case it has since been changed:

http://www.askbm.co.uk/savings/p/fixed/product.asp?id=310&p=terms

Had this mistake been in the T&Cs you sign it was probably in your interest not to tell them about their mistake. I imagine they'd have to honour the 90 days they'd mistakingly put.

Looks like the withdrawal terms, on the 5 year account linked to, were introduced on 26th of November.

opinions4u

macadamia wrote: »

Please be aware that the withdrawal terms noted on their website are incorrect - and they know it. I called them on Saturday 28 November and they advised me that the correct terms (for a 5 year fixed term bond) are 365 days loss of interest; not the 90 days loss of interest stated on their website. Very dishonest IMO.

Very dishonest? I don't think so.

If you were going through an application process and the correct T&Cs said 90 days, then 90 days is what it is. If the T&Cs say 365 days then it is indeed 365 days.

Should the web site be updated? Well obviously it should. But this is not a case of dishonesty because you've already had a verbal confirmation that it is 365 days.

savetilibleed

macadamia wrote: »

Please be aware that the withdrawal terms noted on their website are incorrect - and they know it. I called them on Saturday 28 November and they advised me that the correct terms (for a 5 year fixed term bond) are 365 days loss of interest; not the 90 days loss of interest stated on their website. Very dishonest IMO.

I hope this isn't so of Saga as well. Birmingham Midshires is their savings provider (well for most of their accounts). We have both taken out their 5 year account, the old one year account at 6.64% having just matured. The information that was sent to us included, on a separate sheet the "Special Terms", citing the 90 day get out.

rb10

savetilibleed wrote: »

I hope this isn't so of Saga as well. Birmingham Midshires is their savings provider (well for most of their accounts). We have both taken out their 5 year account, the old one year account at 6.64% having just matured. The information that was sent to us included, on a separate sheet the "Special Terms", citing the 90 day get out.

If the 90 day penalty is covered in the Special Terms (which form part of the agreement of the account), then that is the penalty that you will pay.

It is in the T&Cs - therefore it is binding.

opinions4u

savetilibleed wrote: »

I hope this isn't so of Saga as well. Birmingham Midshires is their savings provider (well for most of their accounts). We have both taken out their 5 year account, the old one year account at 6.64% having just matured. The information that was sent to us included, on a separate sheet the "Special Terms", citing the 90 day get out.

As rb10 says, what you've got in writing there is part of your T&Cs.

You probably got in just in time, although their 2 year account is still showing 90 days online.

Interesting that Saga are using Nat West for their 4 year account.

"This Saga Fixed Rate Savings Bond and NatWest First Reserve instant access account are provided, on behalf of Saga Personal Finance Limited, by National Westminster Bank Plc, which is authorised and regulated by the Financial Services Authority for accepting deposits."

D1zzy

opinions4u wrote: »

Interesting that Saga are using Nat West for their 4 year account.

"This Saga Fixed Rate Savings Bond and NatWest First Reserve instant access account are provided, on behalf of Saga Personal Finance Limited, by National Westminster Bank Plc, which is authorised and regulated by the Financial Services Authority for accepting deposits."

good spot -Thanks

savetilibleed

rb10 wrote: »

If the 90 day penalty is covered in the Special Terms (which form part of the agreement of the account), then that is the penalty that you will pay.

It is in the T&Cs - therefore it is binding.

These are the terms set out in the offer sent to us when they informed us the 1 year bond was soon to mature. It matured on 26 Nov and I have just today got the last bit of lovely interest. In the next day or so I should get the notice that my reinvestment instructions have been carried out. Better just watch they haven't sneaked in a change.

My wife's account matures on 2 Dec and as she topped up with more money she was told that would be reinvested temporarily at the old rate until maturity.

opinions4u wrote: »

As rb10 says, what you've got in writing there is part of your T&Cs.

You probably got in just in time, although their 2 year account is still showing 90 days online.

Interesting that Saga are using Nat West for their 4 year account.

"This Saga Fixed Rate Savings Bond and NatWest First Reserve instant access account are provided, on behalf of Saga Personal Finance Limited, by National Westminster Bank Plc, which is authorised and regulated by the Financial Services Authority for accepting deposits."

I knew about NatWest thanks. Pity about that. There is no monthly interest option, which I think will be of lesser interest to traditional Saga investors liek me!

mikey72

Probably in response to all the postings on here working out the interest rate if you close them after a year, and how it's still worth doing even with the loss of 90 days interest.
Banks will read this site as well.