Not sure if Santander have ripped us off

johnnyboyz

We opened an ISA with Santander in Jan 2010 which we understood would be earning 2.5%.
It now seems that we have earned approx 1% interest over the last 14 months.
Our understanding was that we would receive the 2.5% for 12 months but according to Santander the rate dropped to 1% in April 2010.
Is that normal for the rate to be chopped at the start of a new financial year or have we been ripped off.

MarkyMarkD

There is no "normal" but I would be surprised if a Santander ISA had a bonus/fixed/whatever rate for just 3 months. I think they are giving you incorrect information rather than "ripping you off".

KTF

What is the name of the ISA you have to double check the rate.

johnnyboyz

We spoke to a lady in out local Santander branch today who was sympathetic to our plight but claimed she didn't have access to all the details to be able to tell us what happened.
She did say it was an Issue 3 ISA and that the rate shouldn't have changed for 12 months.
We need to phone some number or fill in a complaint form.

le_loup

Clasic Santander!
Staff say "I dunno, speak to someone else. Anyone else!"
And the long-shot: "Fill in a complaints form."
Do that and you may hear something in three months time.

Suggestion: Move the account NOW.

Catherine_Johnson_2

le_loup wrote: »

Clasic Santander!
Staff say "I dunno, speak to someone else. Anyone else!"
And the long-shot: "Fill in a complaints form."
Do that and you may hear something in three months time.

Suggestion: Move the account NOW.

And write off the missing interest?

If the OP is sure of the rate then wouldn't it be best to query this first than simply walk away and lose money?

jackieblack

From observation/experience, I believe it is common practice for most banks/building societies to bring out new ISA products in each new financial year and for the rate on the old products to take a nose-dive.

POPPYOSCAR

Do you have a statement showing only 1% interest added?

le_loup

Catherine_Johnson wrote: »

And write off the missing interest?

If the OP is sure of the rate then wouldn't it be best to query this first than simply walk away and lose money?

Did I say that?
I have never, will never advocate letting a bank get away with anything. However, moving an account and getting conflict resolved are not mutually exclusive.

johnnyboyz

POPPYOSCAR wrote: »

Do you have a statement showing only 1% interest added?

Well we've seen a statement showing that from March 2010 until March 2011 it earned about 1.2%.

Stompa

johnnyboyz wrote: »

Well we've seen a statement showing that from March 2010 until March 2011 it earned about 1.2%.

Sounds a bit like this:

https://forums.moneysavingexpert.com/discussion/2319175