Sainsbury's Bank Online Saver drops interest rate by 0.25%

Special_Saver2

Hi Folks,

I have received an e-mail from Sainsbury's Bank to inform me that all customers with an Online Saver account opened between 5th September 2009 and 15th April 2010 will have their interest rate dropped from 3.20% gross AER to 2.95%. This change will take effect from 30th June 2010.

SS2

Sceptic001

It is still a good rate, and full marks to Sainsbury's for notifying savers individually and giving plenty of notice. If only all banks behaved like this!:T

Consumerist

I seem to remember hearing, on a tv programme recently (Dom Littlewood on BBC The One Show, maybe), that from sometime in May, notice must be given before savings-account rates are changed.

I'm sorry this is a bit vague but I'm trying to find some corroboration for this and will post again if or when I find any.

keithj

Working Lunch mentioned it yesterday, saying its starting on 1st May.

Consumerist

OK. Found it !

It would seem that this kind of practice will be prohibited from 1 May 2010. :T

Extract from Consumer Focus super complaint on cash ISAs - Regulatory framework for saving products (page 11)

The rules governing the communication of changes to interest rates paid on savings accounts changed substantially from 1 November 2009; banks have till 1 May 2010 to implement some of the changes. The intention of these changes is to remedy some of the most disreputable ‘bait pricing’ practices where customers are attracted to a product through temporary bonus rates of interest, which lapse leaving the saver on a low rate of interest.[

Not before time, in my view.