cash isa plus rate RBS

plumbob300

I have received a letter notifying me that my cash isa plus rate has gone from 3.51% down to 3.01% are they allowed to do this with this type of isa?:mad:

Optimist

If it is a variable rate ISA then yes, Read the terms and conditions

Lokolo

You mean are they allowed to change the interest rate on a variable rate ISA? Yes.....

plumbob300

Does not say anywhere that it is a variable rate have checked all the small print

Lokolo

http://www.beatthatquote.com/news/banking/Why_you_need_an_ISA.html

According to this is was variable.

SimonM_2

Whilst the Cash ISA Plus is a variable account, you may wish to check your terms and conditions. If they are the same as Natwest (which I'd expect they are, and they've sent the same letter about their Cash ISA Plus today) they need to give at least 30 days notice of a change of interest rate on a non-payment account, which their ISAs are classified as.

As detailed in the Natwest terms (yours may differ, please check RBS terms):

If your account is a Non-payment Account , other than an
account of a fixed duration (such as a bond), we may also
change the interest rates which apply to your account by
notifying you personally not less than 30 days before the

change takes effect.

This clearly hasn't happened, with the change coming in to effect tomorrow. Phone them up, complain, get the 30 days written notice the Terms and Conditions state.

The_Enforcer

Still showing as 3.51% here:

http://www.rbs.co.uk/personal/savings/g5/superseded.ashx

Perhaps they have written simply to give you the 30 days notice?

I have a NatWest one with the bonus, so if this is repeated there I will drop down to 3.51%, which is still better than any other easy access accounts available at the moment.

The_Enforcer

I had one waiting for me at home too. Rate changes from 4.02% to 3.53% as of tomorrow, so not 30 days here either. Terms and conditions about notice appear contradictory - see NatWest thread.

bigbullyweedave

Annoyed about this as they sold me it as being at that rate until at least next April. In fact when I spoke to them recently when transferring older RBS ISAs they said this rate would almost definitely be extended after April.

Lesson learned - do not trust rbs empoyees and read the small print!