NATIONWIDE treats its members like dirt....

opinions4u

Wendolin wrote: »

You have to question the motives of those who are defending these bad practices, just because most financial bodies are doing it doesn't mean it is good practice.

If they paid a "fair rate" to all but stopped paying higher rates to attract new business, then the customers who can't be bothered would earn more interest and the rate tarts would all leave - causing the building society to make a loss and suffer a run on their savings book - collapse is the inevitable outcome.

I don't defend it. It's just an economic reality caused by the fact that 80%-90% of customers can't be bothered to look after their money properly.

It wasn't so long ago they were at least forced to write to you when they changed interest rates.

When were they ever forced to send such letter? Ah, since 1st May 2010. Certainly not before.

The good news is that my daughter had a much better return from an ISA in the Yorkshire BS which paid out 6 times the return given by the NW - and no, I have no idea how they managed such a high return.

I'm sure customers opening a new ISA with Nationwide got several times more interest than long standing YBS ISA customers.

le_loup

Wendolin wrote: »

The good news is that my daughter had a much better return from an ISA in the Yorkshire BS which paid out 6 times the return given by the NW - and no, I have no idea how they managed such a high return.

That's good to know that you/she have done the right thing ... moved the money and got a good rate; good lesson learned.
Now monitor it, it will not be competitive for all time. Yorkshire have a particularly bad reputation for poor rates, but no doubt you research has shown that.

dunstonh

You have to question the motives of those who are defending these bad practices, just because most financial bodies are doing it doesn't mean it is good practice.

You mean that the responses from people that know what they are talking about.
Just because people disagree with you are tell the reasons why it happens, doesnt mean they have a motive. Although the truth and facts are pretty good motives.

The good news is that my daughter had a much better return from an ISA in the Yorkshire BS which paid out 6 times the return given by the NW - and no, I have no idea how they managed such a high return.

They manage it by running it at a loss for a period to obtain new money. They hope most of the money will not be from rate tarts and will stay there when the rates fall back to their normal levels.

Lessons to be learned:- A bond is not really a bond (unless its 007). They didn't really mean promises made in the bond to last for long even though the same bond is on sale several years later. "You'll always get a competitive interest rate because unlike banks we can give you a better return on your money" means nothing at all really. They gave too low an interest rate to some mortgage takers so they are entitled to get the money back from savers. Busy wives and mothers shouldn't trust anyone and get help!

Pretty much spot on.

ps2659

Proud to be different.:rotfl:

Wendolin

Surprisingly you are all wrong about this particular Yorkshire account - it started as a Tessa and on every renewal (annually) gives you details of the next years fixed rate. It has been running for at least 6 years.

le_loup

That's right ... IT'S FIXED RATE ... and the rate changes after the fixed rate period. The NW members ISA was not! You are learning well.
... but there really is no need for the attitude. You sought help. You got help.

lisyloo

As I said at the start I get fed up with having to constantly monitor my accounts

I'm not sure why you have to constantly monitor your accounts.
Most people get accounts that pay a good rate for 12 months, so in 11 months time you start shopping around.
It's not a hardhsip to spend a few hours every year, in return for hundreds of pounds.
If it's is too much hardship to shop around then don't do it, but don't expect top rates for doing absolutely zip.

Wendolin

If you had actually read my original post you will see that I didn't seek help - I don't need it, and if you call your comments help.... I am doing more than OK thanks. I was simply putting up a flag to remind those that still hold this account to dump it. Any yes my daughter won't make the same mistake again.

Pendle_Gazza

Competitive doesn't equate to "good rate", so they haven't broken any promises. Your daughter isn't the first to be caught out and peed off by massive rate reduction, and she certainly won't be the last.

Nowadays, if your rate isn't fixed, you have to get used to moving your money around, whether that's at the expiry of the bonus element, or after monitoring any rate drop every few months.

I'm sure most of us would like to keep with one or two banks for years and years, but it doesn't work like that any more. Like lots of things in life you have to put the effort in to reap the rewards. If not, then accept the 'pain'.

le_loup

Wendolin wrote: »

If you had actually read my original post you will see that I didn't seek help - I don't need it

Ah! So you just joined this group to have a rant.
... but not for people to have a rant back.
Got it.