West Brom Savings Insult

Mickygg

I got my savings maturity offer from West Brom today.

They offered me to re-invest at the following: -

1 year fix at 2.75%
2 year fix at 3.22%
3 year fix at 3.72%

A month a go they were offering to new customers 1 year fix at 3.3%, 2 years fix at 4.15% and a 3 year fix at 4.65%!!

This is yet another insult to existing customers. The first 2 they have offered me do not even beat current inflation, and seeing as I can get instant access accounts for 3% why on earth would I even think about fixing with West Brom?? West Brom will not be having my money any more.

Interest rates keep falling that banks and BS's offer, and I for one am so fed up with it. Looks like keep it instant access for now and hope inflation does not erode my savings too much!

Rant over

RayWolfe

With bank rates at 0.5%, what exactly would you expect?
It's not necessarily sensible to take 3% instant access when tomorrow, the provider can reduce rates to 0.1%!
Finally, don't compare last months new customer rate, compare today's new customer rate.

rb10

How is this an insult to existing customers?

Their one-year bond available to new customers pays 2.35%, whilst you have been offered 2.75%. They are giving you a better rate than they are offering new customers.

Mickygg

RayWolfe wrote: »

With bank rates at 0.5%, what exactly would you expect?
It's not necessarily sensible to take 3% instant access when tomorrow, the provider can reduce rates to 0.1%!
Finally, don't compare last months new customer rate, compare today's new customer rate.

Everyone knows bank rates are at 0.5%. What I am saying is when interest rates were at 0.5% I managed to look around and find fixed yearly deals for 1 year over 4%. Mine has matured from 4.35% fixed for a year - the interest rates banks and BS's buy and lend at is not just linked to the base rate, it's linked to LIBOR rate and other factors. You struggle to get 4.35% fixed for 5 years now. This has all happened when base rates have been at 0.5%. So in answer to your question, I expect savings rates to be a bit higher, especially when these banks and BS's are lending out at much higher rates.

The provider can't reduce rates to 0.1% when there are fixed bonus elements attached - the AA for example.

Mickygg

rb10 wrote: »

How is this an insult to existing customers?

Their one-year bond available to new customers pays 2.35%, whilst you have been offered 2.75%. They are giving you a better rate than they are offering new customers.

West Brom I have now found out have this tactic - when their fixed rate deals end, they reduce their rates on offer. It was time for me to re-invest or do something with my money now (along with hundreds of other people as the deal is fixed until end of May) - guess what, come 1st May all their decent products have been pulled, so they offer much lower rates.

I wouldn't mind but I have instant access at 2.8% so their 'deals' they offer me for being an existing customer are awful. I could have gone for an earlier better deal, but months in advance before your money matures it's hard to say if I want to tie up for so long.

Oh well, back to the drawing board. I don't know enough about stocks and shares, so will stick it out instant access and hope rates for savers improve, at least to cover inflation!

RayWolfe

Mickygg wrote: »

West Brom I have now found out have this tactic - when their fixed rate deals end, they reduce their rates on offer.

No they don't, they only do it for you.
Clearly you have been singled out and they have closed all their old accounts and opened up new ones at a lower rate just as yours matures. I found that, when mine matured, they had brought out a great new one, just for me ... life sucks sometimes.

slush

Depends what you are looking for... if you want a 5yr fixed rate, take a look at ICICI at 5%. or if its easy access/short term why not open some A&L current accounts paying 5% for 12months, provided you are willing to do 5 mins online money shifting once a month.

My wife anf I get our West Brom bonds payout at the end of the month, just like you. We were happy with the deal when we took them out, and have already ear marked where ist going......... just gotta play the game.. look at the offers and take your pick, there's plenty out there!

OneADay

Got bond maturing end of May 2010, had a call from West Brom - was not keen on visiting their branch near me but accepted to turn up on 19th May to see what they offer. But I already know they have nothing I like.

I would suspect that in June, the west brom will have to come up with better offers. The 12 month bonds (Issue 21) that paid 4.3% in 2009 all mature on 31st May 2010. So if people refuse to take up renewal offers, they will have to find some other ways to tempt people back to put money into their pots.

shaun_from_Africa

Why not do as I did when faced will a similar situation with a maturing bond held with the B&B.

Shortly before it matured I received the usual letter asking what I wanted to do with the money and I simply opened an instant access account and asked them to transfer the funds into that.
It paid a pathetic rate of interest, but it was only in there for a couple of weeks until they released a new issue savings bond, and as the account that the money was in was instant access, it was very simple to take out a new bond and transfer the money from the savings account.

OneADay

shaun_from_Africa wrote: »

Why not do as I did when faced will a similar situation with a maturing bond held with the B&B.

Shortly before it matured I received the usual letter asking what I wanted to do with the money and I simply opened an instant access account and asked them to transfer the funds into that.
It paid a pathetic rate of interest, but it was only in there for a couple of weeks until they released a new issue savings bond, and as the account that the money was in was instant access, it was very simple to take out a new bond and transfer the money from the savings account.

Doing all that, all year around as each bond matures .... its a job in itself trying to manage one's money :eek:.

A&L online saver 7 is what I am currently using for instant access savings.

baby_boomer

My feelings for the West Brom are mixed.

On the one hand the Chief Executive is a complete *******.

On the other hand they are still paying me 7.12% until July.

Mickygg wrote: »

Looks like keep it instant access for now and hope inflation does not erode my savings too much!

Wishful thinking, I fear . You may need to come up with another strategy.