Can Nationwide Building Society Get Away With This?

hallmark

OP, are you seriously making this much fuss because you didn't or couldn't take the time to check what interest rate you were earning? Regardless of any of the wrongs or rights of the situation, you're in for a tough ride if that's the way you approach things.

You can't rely on "trust" & it's naive in the extreme to think you can.

opinions4u

Bank of England base rates fell from 5.5% to 0.5% within a few months.

It was on the news channels, in the newspapers and other exciting places.

Oddly, savings rates fell dramatically at the same time.

There was some vague talk about banks and building societies going bust.

As a businessman you would probably understand decisions to improve their cost and income base in such circumstances.

I must have missed that excellent advice in all the criticism

I think this was brilliant advice:

Majority of my money is in ISAs.

All I need to do is:

Go here:
http://forums.moneysavingexpert.com/...d.php?t=401374

Look at the highest paying rate. Compare to my current one (which I have written down in a spreadsheet).

If I think its worth it. I then spend the next 10minutes applying for the account online. Or printing a form off and posting it.

All done in 10minutes.

As I also fix for 12 months to know my rate (I can win if rates go down, I lose if rates go up, thats the risk I take). And as I am fixing, I only need to do this every 12 months.

Overall: 20minutes work and I have best paying ISA at the time at a fixed rate. Bonus.

Easily done at halftime on Saturdays whilst the footies on.

Here's mine:

1) Don't trust a bank or building society to always pay you the best rate.
2) Check at least once a quarter what rate you're getting and what the competition are offering.

sabretoothtigger

John_M_Business wrote: »

You're right... I'm off to find others who think that what I am suggesting is a good idea in terms of calling the banks to be more transparent about rate changes.

Call me old fashioned, but isn't this what they used to do? And isn't this a sensible suggestion?

Top left corner, that dude agrees with you. MSE is trying to get interest rates shown on statements, its common sense hence the banks dont like it

John_M_Business

opinions4u wrote: »

Bank of England base rates fell from 5.5% to 0.5% within a few months.

It was on the news channels, in the newspapers and other exciting places.

Oddly, savings rates fell dramatically at the same time.

There was some vague talk about banks and building societies going bust.

As a businessman you would probably understand decisions to improve their cost and income base in such circumstances.



I think this was brilliant advice:
Here's mine:

1) Don't trust a bank or building society to always pay you the best rate.
2) Check at least once a quarter what rate you're getting and what the competition are offering.

If my savings account was an ISA savings account then it would have been good advice... however I never stated that it was an ISA account, e-savings is not an ISA account, therefore it was rubbish advice as you cannot transfer in more than your allocation to an ISA account.

opinions4u

John_M_Business wrote: »

If my savings account was an ISA savings account then it would have been good advice... however I never stated that it was an ISA account, e-savings is not an ISA account, therefore it was rubbish advice as you cannot transfer in more than your allocation to an ISA account.

Anybody with an ounce of common sense would recognise that the advice given is relevant whether the accounts are ISAs or not.

I'll repost it without the word "ISA" and then you may understand. I've changed the link too, just to help you out a little bit more.

All I need to do is:

Go here:
www.moneyfacts.co.uk/savings


Look at the highest paying rate. Compare to my current one (which I have written down in a spreadsheet).

If I think its worth it. I then spend the next 10minutes applying for the account online. Or printing a form off and posting it.

All done in 10minutes.

As I also fix for 12 months to know my rate (I can win if rates go down, I lose if rates go up, thats the risk I take). And as I am fixing, I only need to do this every 12 months.

Overall: 20minutes work and I have best paying account at the time at a fixed rate. Bonus.

Easily done at halftime on Saturdays whilst the footies on.

Be pro-active about your money and you will earn more form it.

Andystriker

It's not that it's rubbish advice

but

it's a post/advice that the OP does not want to hear.

The best way to deal with banks and building societies is to move your money when their rates go lower, Play the system.


Simple

Gorgeous_George

You need to play the banks and Building Societies at their own games.

Last year, Nationwide offered £50 if you transferred another bank account to your (Nationwide) Flexaccount. I thought that this a waste of their (our) money (lower rates on our savings accounts funded this ridiculous scheme). So I did and netted £50. Then I switched to First Direct and netted another £100.

So, I got less interest on my savings but I made £150 for a few minutes work. I also moved my savings to another account elsewhere. I keep my Nationwide account running with a few pounds in now and then. This ensures that I get a statement every month. This must cost them more than they make from me.

Nationwide- Proud to be different.

The idiots have taken over the asylum.

GG

MarsdenCuckoo

Seems this interest rate drop, without notifying customers, is quite common but in my view that's not to say it's morally right. I've come across this a few times in the last few months and am appalled that it actually seems to be 'the norm' rather than the exception.

When we trust banks/finance houses with our capital is it asking too much that they notify us when they change the prevailing interest rate? Seems to me that they should be legally compelled to notify all customers of any changes in interest rates and, maybe, the institutions that lead the way by actually doing this will prosper (and deserve to :T )

Shame on all the others.

MarsdenCuckoo

Usually_Angry wrote: »

!!!!!!?

I could maybe, possibly, understand if they were doing this out of the blue. But the unprecedented base rate cuts were all over the news at the time, and anyone who didn't notice them probably wouldn't be reading their bank statements anyway.

If you read the terms and conditions of your bank account they state quite clearly that they reserve the right to change the rates. Shame on anyone who doesn't read and understand the terms and conditions.

OBVIOUSLY, (for the avoidance of doubt) am not talking about FHs reducing rates following the BR cuts - as you say, everyone should be 'au fait' with normal economic trends. In my experience, however, it has become the norm for banks, etc. to attract new capital and then sneekily drop the interest rate. Just doesn't seem morally right to me. As you say, they reserve the right to change the rates but the time will come - hopefully - when they are legally obliged to let their customers know as/when they do!!

Andystriker

Everyone has to take responsibility for their own finances.

You should not expect anyone else to do it for you especially a bank or BS.