AA Internet Saver - bad experience

db3745

Thought I'd just warn anyone a touch less wary than myself so no-one gets caught in the bonus trap where rates are ramped up with a bonus - in the case of Internet Extra 2 launched in Jan 2010 a 2.5% bonus on top of 0.5% making 3.0% in total. I opened this in Feb. I admit I wasn't sure, nor was it clarified whether the 12 month bonus ran only from launch date or from my opening date (the former I now guess).

Anyway I had just let the 12 months slip by so checked out online what the rate situation now is. There had been an Issue 3 in March 2010 and an Issue 4 now current and paying 2.8%. My Issue 2 is shown as paying 3.0% with a note attached that there is a bonus attached etc etc, but nothing to say that the rate is now 0.5%. I'm not normally naiive and thinking that banks are looking after established customers but I was reassured that here they were saying I was continuing to get 3%. Fortunately it was too important to leave to chance so phoned them to be told that I was now on 0.5%.

Two points:
Citibank, when I had a similar 12 month bonus, had the decency to write to me to warn that the 12 months were nearly up, and yes this was also an Internet account. Secondly the listing of a meaningless false rate of 3.0% would fool a lot of people into thinking all was well.

I know regular account changers will laugh but I just think it's blatantly misleading customers at a time when banks need all the good customer servive they can muster.

I won't be using AA again.

noh

The bonus runs from account opening date.

Can't see anything misleading.
The rate is quoted as
AA Internet Extra (Issue 2) Account

Balance
£1+
Gross p.a./AER%
14.01.10
3.00

account launched 14 January 2010

• rates include a 12-month gross bonus of 2.50%

It is stated that the bonus lasts for 12 months.

rb10

They also state clearly in their T&Cs that they won't contact you specifically when the bonus period expires - so you've had a whole year's warning.

And when you log in, they give the interest rate of your account on the main account screen. This will have dropped to 0.5% when the bonus expired.

noh

A suggestion for anyone opening accounts with a fixed term bonus interest rate is to, if possible, rename the account so as to indicate when the bonus rate finishes.

For example I renamed my AA Internet Extra Issue 3

"2 point 8 21July2011"

saveonarola

@db3745

Thank you for this post. I've just checked my AA Internet Extra 2 and I'm in exactly the same position - rate just dropped to 0.5%. Okay, I should have made a diary note, but I didn't, so you just saved me a few quid.

In future, I will rename the account, as suggested by noh. Excellent idea.

edda

You can easily transfer from an existing AA Internet Extra account (whatever issue) to the current one by phoning them.

The current issue is 4 and pays 2.8% (with a 12 month bonus). Not the best rate in the world, but at least it's okay while you look somewhere else.

That's what I've done.