Miserly ISA rate from Alliance & Leicester

hester12

This is a warning for anyone with Direct ISA Issue 1,2,3 & 4.
Since 02/09/2009 the interest rate has been reduced to a miserly 0.10% down from 1.10%

Move it quick.

KingL

Issue 1c is still on 2.0%, but the 1 year guaranteed 1.5% bit of that runs out next month, so yep, time for a change if anyone took that best buy and hasn't moved yet.

G_M

This forum would be jam-packed with posts like this if we all warned about every account that had dropped its rates.

There is only one rule: monitor all your accounts. If you don't, accept the miserly rate you will eventually end up with.

A&L are no different from (most) other providers.

barrieroberts

NATIONWIDE whom i have delt with for 35or more years just screwed me this week i hade £5000 plus £1000 added during the year in a Bonus 60 account which we get made up every January with interest, last week my wife took the book in to get just £10.06 added as against £300 the year before ,as we live near only a small office in an estate agent we were told to go to Chester to complain to be told that the rate changed 1-2-09 to .02% and tough on us ,i know you say we must watch rates but this is a joke ,it is NATIONWIDES loss as i intend to close that account add £5000 i have just recived from a maturing insurance policy and take it else where ,also when my £20000 bond maures in July they will lose me for ever ,and to think i voted all those years ago to stay as a mutual WHAT a mug ??

rb10

barrieroberts wrote: »

NATIONWIDE whom i have delt with for 35or more years just screwed me this week i hade £5000 plus £1000 added during the year in a Bonus 60 account which we get made up every January with interest, last week my wife took the book in to get just £10.06 added as against £300 the year before ,as we live near only a small office in an estate agent we were told to go to Chester to complain to be told that the rate changed 1-2-09 to .02% and tough on us ,i know you say we must watch rates but this is a joke ,it is NATIONWIDES loss as i intend to close that account add £5000 i have just recived from a maturing insurance policy and take it else where ,also when my £20000 bond maures in July they will lose me for ever ,and to think i voted all those years ago to stay as a mutual WHAT a mug ??

So where are you going to take your money? I think that you will be very hard pressed to find a bank/building society that does not work in exactly the same way. When base rate fell, it was inevitable that the interest rates fell too.

It is not hard to check your interest rates from time to time, even if you just spend half an hour on it every six months. Make a note in your diary now for June, and check that you're still getting a reasonable rate.

(By the way, are you sure you got £300 on a balance of £5000 in 2008?? That's a rate of 6%, and the Bonus 30 (previously Bonus 60) only paid 4.6% on 1/1/08 and 4% on 1/5/08 and 3.4% on 1/11/08 (all AER rates.)

G_M

barrieroberts wrote: »

NATIONWIDE whom i have delt with for 35or more years just screwed me this week i hade £5000 plus £1000 added during the year in a Bonus 60 account which we get made up every January with interest, last week my wife took the book in to get just £10.06 added as against £300 the year before ,as we live near only a small office in an estate agent we were told to go to Chester to complain to be told that the rate changed 1-2-09 to .02% and tough on us ,i know you say we must watch rates but this is a joke ,it is NATIONWIDES loss as i intend to close that account add £5000 i have just recived from a maturing insurance policy and take it else where ,also when my £20000 bond maures in July they will lose me for ever ,and to think i voted all those years ago to stay as a mutual WHAT a mug ??

There is only one rule: monitor all your accounts. If you don't, accept the miserly rate you will eventually end up with.

Nationwide are no different from (most) other providers.

barrieroberts

hi to RB 10 i had £23000 for the first 6months of the year which i then moved £18000 in to a bond also the interest was £464 befor tax ,i took it down to £300 to allow for that ,

rb10

barrieroberts wrote: »

hi to RB 10 i had £23000 for the first 6months of the year which i then moved £18000 in to a bond also the interest was £464 befor tax ,i took it down to £300 to allow for that ,

Ah, that explains it.

Your first post made it sound as though you lost £290 of interest just by Nationwide reducing the rate, but a large chunk of it was because you had a lower balance.

Well, with every bank (except Halifax Reward current account), a lower balance will result in less interest being paid, so you can't be that surprised?

barrieroberts

Hi rb10 so what you are saying that on 1-11-08 the rate was 3.4% i recived interest payment 0n 31-12-08 and on the 1st feb they reduced the rate to.02% ,now my interest was payed yearly so they presumed i would be like 95% of the population and not notice ,no NATIONWIDE are just like all the rest as you say but they should drop the moral attitude as we are a Mutual so trust us ,thank you for your comments but when you think about it the best thing i have learnt is there aint no one out there but The Money Saving Expert ,because they all want your money and to hell with morals or truth ,thanks again to all commenters ,barrie

G_M

there aint no one out there but The Money Saving Expert

No - even he won't write and tell you when the rate on your account drops!

Take some personal responsibility!

I hesitate to repeat myself, but:

There is only one rule: monitor all your accounts. If you don't, accept the miserly rate you will eventually end up with.