Can Nationwide Building Society Get Away With This?

Lokolo

John_M_Business wrote: »

I think we should try to put pressure on for change. It's been done in a number of areas... already in terms of headlining interest rates and APRs in new business adverts... it just needs to be extended to changing of rates.

However, you could just let the banks do it because you're essentially prepared to accept they can get away with it.

Which situation seems passive now?

I wouldn't be putting pressure on yet anyway. Wait until ConDems have decided how they are reforming the banks. They have announced they have plans to.

EarthBoy

John_M_Business wrote: »

....
5. They created a 'new' account they didn't promote to existing savers called 'e-Savings Plus' which is exactly what e-Savings was, so the few that did notice, could move accounts internally....

E-Savings Plus is not the same as E-Savings at all. With E-Savings Plus you are limited to three withdrawals per year if you want to keep the higher interest rate. Four or more withdrawals and the rate drops to even less than the rate on E-Savings.

John_M_Business

nomoneytoday wrote: »

UK Interest rates are 50bps. QED saving rates will also fall to low rates

Couple of reasons why actually the base rate does not define the savings / lending rates:
a) Because what any financial institution is interested in is the DIFFERENCE between lending and borrowing. Therefore if we did hit base rates for savings, then borrowing would / could only be 2% more or so...
b) There are many savings accounts at 2% or more, wheareas the e-Savings account being scrutinised was deliberately reduced whilst a new account e-Savings Plus was opened offering pretty much the exact terms that e-Savings had

John_M_Business

Lokolo wrote: »

I wouldn't be putting pressure on yet anyway. Wait until ConDems have decided how they are reforming the banks. They have announced they have plans to.

Do you really think this will be at the top of their agenda? No, it'll first be 'hold on, we propped them up when they dropped the ball, bailed them out and now they're paying fat bonuses'.

It is exactly because they are reviewing the banks that we should be putting pressure on our MPs to review this as a part of the overall review. Sadly, without legislation, banks aren't going to voluntarily communicate what they need to.

The two points are:
a) Email AND Mail all account holders 14 days before interest rates are changed on a particular account, and
b) Put in print online and offline the Gross and NET interest rates (and APR where applicable) on any accounts with interest rates whenever someone is viewing any of the specific account pages or statements

This can easily be done by banks and should be part of their due diligence.

Or, of course, you can just roll over.

John_M_Business

EarthBoy wrote: »

E-Savings Plus is not the same as E-Savings at all. With E-Savings Plus you are limited to three withdrawals per year if you want to keep the higher interest rate. Four or more withdrawals and the rate drops to even less than the rate on E-Savings.

They made the same changes to the eSavings account. And withdrawals were different to internal transfers so as long as you have a linked current account... then you could still manage the cash easily.

John_M_Business

Andystriker wrote: »

The OP asked for posters to post their thoughts.

If he wants sympathetic then perhaps this is the wrong forum.

I just wanted a view - and 'hey, the banks are just bad' is actually not contributing as I already know that this is the case. It is a massive shame, however, that a mutual organisation would behave in this way. I thought, naively, that Nationwide wouldn't screw it's customers.

In any case you're just inadvertently submitting to the 'Caged Tiger' PR positioning of the bank - which is essentially the preferred media position of conglomerates and multinationals where, rather than seeming to bend to consumer pressures, they recognise that can get away with much more, and be more offensive (in all senses of the word) by behaving like a caged tiger - i.e. you're fortunate that there is legislation because if they could they'd take everything. So actually, you're fortunate that they don't just close all savings account and nick your money like BCCI.

This, in my opinion, is a bigger case of mass fraud than the bank charges fiasco and aren't many of us glad that MSE and others did something about this...

Mickygg

Andystriker wrote: »

The OP asked for posters to post their thoughts.

If he wants sympathetic then perhaps this is the wrong forum.

Andy - re-read the OP, asked for :-

"If you are a customer who's had a similar experience then please post your thoughts? If you're a moneysaver familiar with this kind of situation - can you give me any ideas? I have already directly complained to them, but they've 'flat batted' it claiming that press ads are enough (and even then, press ads with very small print in only a few newspapers)."

What have you added to this post exactly? OP has asked for people who have had similar experiences, not, lets jump on the bandwagon and say you should have been on top of it.

John_M_Business

thistledome wrote: »

I took my money out of e-savings late last year and put it into the e-savings plus, but it did take me a while to notice that my interest rate had fallen.

Like others have said, all the banks do this and I agree with OP that it's not good enough, but unless the law states that they have to e-mail/write you and tell you the rate has dropped, they won't do it.

You need to make the time to check these things on their web site. Once a fortnight or month would do and it'll take 10 minutes or so.

We expect a mutual to be more "caring" than other banks, but they're not really nowadays, not when it comes to making money. Customer service could be another matter. I left Abbey National when they started to charge £5 to pay a bill over the counter (over 10 years ago) and I much prefer Nationwide, they've always been very fair with us. Don't change banks too hastily, I've found the customer service and staff at Nationwide to be excellent when I've needed their help.

FWIW it's precisely because of what they've done that I am not staying with e-Savings Plus. They're losing a customer who would have kept his savings with them and, when he becomes a homeowner again, almost certainly would have had a mortgage with them - even if in both instances they weren't quite the best deal.

Sadly, the only way we can vote is with our feet. I have suggested, however that if they're going to behave like a bank they could at least demutualise.

Andystriker

Mickygg wrote: »

Andy - re-read the OP, asked for :-

"If you are a customer who's had a similar experience then please post your thoughts? If you're a moneysaver familiar with this kind of situation - can you give me any ideas? I have already directly complained to them, but they've 'flat batted' it claiming that press ads are enough (and even then, press ads with very small print in only a few newspapers)."

What have you added to this post exactly? OP has asked for people who have had similar experiences, not, lets jump on the bandwagon and say you should have been on top of it.

He should have been on top of it simple as.

He has had excellent advice from Lokolo.

And the only way to avoid this in the future is to move your money. It takes minutes not days. That is my "added to this post"

And I'll post what I want when I want on a public forum thanks.

John_M_Business

Andystriker wrote: »

He should have been on top of it simple as.

He has had excellent advice from Lokolo.

And the only way to avoid this in the future is to move your money. It takes minutes not days. That is my "added to this post"

And I'll post what I want when I want on a public forum thanks.

I must have missed that excellent advice in all the criticism... :rotfl:

It seemed to amount to 'your fault guv. go visit the savings pages and get a fixed rate'. Really, truly, remarkably good advice, don't you think?