abbey's paltry isa return 0.1%

gregc

PC_Gabriel_Kent wrote: »

At 90 she probably aint too fussed what rate she gets.

If it was your 90yr old gran, and you were on the inheritance list, I'm guessing you'd suddenly think she should be interested in the rate she's getting!

Come on, its us versus the banks, not versus 90yr old grans. Even if you don't think she's fussed about the rate, we'd rather it was in her pocket than mr bank manager.

And in support of several on this thread, I think those in the know should be empowering all of those that aren't!

PC_Gabriel_Kent

Not sure where you get sticks and cripples from but the point i was making was that a 90 year old probably wont spend all that money. The obvious reason is being aged 90 and probably wont live long enough to spend it all! Therefore the interest rate is not massively important as they wont be around long enough to need mega interest.

I suspect the truth of the matter is more what gregc says. The person is not concerned their gran is getting tiny interest but they want a whopping inheritance to come their way. Self interest of course.

jh2009

My gran has modest savings. A nice amount, but not enough to leave me in a life of luxury, and in any case any inheritance, if there even is any, will be split several ways in my family so an extra 3% interest wont make me rich. Judging by my grans health she will probably outlive me in any case!

My point is more a moral issue, and i want to see people in ill health, and old age who cant log on and switch to Online access saving edition 368, and also people who work 6 or 7 days a week with families who havent got time to review their savings every few months to get treated with some respect by financial companies.

randalf72

I'm in a similar situation and have transferred my ISA from Santander because complaining has pretty much got me nowhere.

I've had the same problem with my Cash ISA and Santander, however being the moneysavingexpert I am, I went into my local branch and asked to be transferred to the new rate in March 2009.

When my statement came through last month I find i'm on 0.1%...and have been for over 12 months.

When I finally get through to the complaints dept, they can't find any record of my transfer request. They do find evidence I opened a regular saver in March 2009 though.....What chance does anyone have of going into any bank in March and not being at the very least quizzed about their ISA provision? In any case, I say I did and Santander say I didn't, which is where we left it.

But no, got absolutely nowhere with the Santander complaints department.

however it would appear that the 'Money' section in the Times on Saturday and Sunday are looking to pick this up as a mis-selling scandal should enough readers contact them through their website.

http://www.timesonline.co.uk/tol/money/

Can I suggest that if you feel disappointed by the way you have been treated by Santander that you leave a message on the Times' website and hopefully there will be enough groundswell for them to run with the story and shame Santander into treating its customers decently.

randalf

savemoney

Why did the OP get a much lower than expected rate, one poster said this catches a lot out

Now I am wondering how is this happening and what can you do to prevent this

We have 3 accounts in our house hold with Abbey both opened in last 2-3 weeks with 3.5% easy Isa. I dont want to find in March 2011 I got 0.1% when it says it guaranteed 3.5% at least

I dont mind leaving money in there for 12 months but I dont want a crap rate as I am getting in current account

randalf72

All you can really do is keep an eye on the rates as posted on their website (not easy to find either so I suggest you bookmark the relevant page), although IIRC they are guaranteeing the rate to be a min of 2.7% above base rate until March 2011.

They are catching people out through either not informing them or not acting as asked. Most people are assuming rates are low this year and aren't questioning their statements.

At the very least they are treating their customers dispicably IMO and taking advantage of the current lack of competition in the banking industry.

I know the Times are looking to run a story on this but perhaps admin might like to pass this thread on to Martin and see if he can try and get anything from Santander.

randalf

savemoney

Thanks a letter I got today from Satander about my Isa says guaranteed 3.5% so surely rates cant drop unless B)E base rate is less than 0.5% so and can only go up

The leaflet says

Flexible ISA - Limited offer

You'll never earn less than 3.50% AER tax free (variable) for 12 months

Pays 3% above BOE for 12 months

With guaranteed rate for 12 months of 3.50% AER tax free (variable) and a promise to track 3% above BOE rate for 12 months, you cant lose out

Consumer1_2

Has anyone considered whether Abbey/Santanders actions are a 'misleading omission' under the CPR's 2008?

I have an ISA with them, and like Sunshine, the interest rate was reduced to 0.1% without notication 'in accordance with the terms and conditions'.

However, this is a deliberate practice to avoid payment of interest. I have had my ISA for 10 years with Abbey, and never has the interest rate been reduced to such an extend, only ever in line with current rates, and certainly comparable with other products available. When they reduced existing ISA's to 0.1, they had a range of new products available at 2.75%.

Does anyone have an opinion as to whether this is an offence under CPR's ie. deliberate omitting to provide information which will affect the average consumers transactional decision?

Consumer1_2

Has anyone considered whether Abbey/Santanders actions are a 'misleading omission' under the CPR's 2008?

I have an ISA with them, and like Sunshine, the interest rate was reduced to 0.1% without notication 'in accordance with the terms and conditions'. I anticiapted it would be reduced in line with current reduction in interest rates generally but 0.1% when they were offering 2.75 on new ISAs?

This is a deliberate practice to avoid payment of interest. I have had my ISA for 10 years with Abbey, and never has the interest rate been reduced to such an extend, only ever in line with current rates, and certainly comparable with other products available. When they reduced existing ISA's to 0.1, they had a range of new products available at 2.75%.

Does anyone have an opinion as to whether this is an offence under CPR's ie. deliberate omitting to provide information which will affect the average consumers transactional decision?

randalf72

I saw that the rate would drop to 0.1% in the small print when I originally took out the ISA in 2008, although this was never mentioned during the financial review at the time (For financial review, read opportunity to sell you further products).

But then I've always thought of myself as pretty savvy with finances and have always been willing to move money in search of a better rate.

If you were to claim that you hadn't been informed that they were dropping the rate when you took the ISA out and you could prove this and at no stage did Santander send you a copy of the ISAs T&Cs then maybe you would have an argument. That would be a tricky argument to win though IMO.

randalf