Puzzling offer from Dunfermline

Chriskim

My Fixed Rate Cash ISA matures at the end of the month and Dunfermline are offering me a choice of:
Fixed Rate Cash ISA 12 months at 3.2%
Cash ISA - Earn up to 0.25% variable

I can't understand why anyone would want the second option. I've searched the details and can't see that it's paying O.25% above RPI or anything. Am I missing something here?

moonrakerz

Different Ts & Cs probably.

VT82

People who don't want to be tied in for 12 months so they can transfer elsewhere will take the second option.

Funkyfreddy

Chriskim wrote: »

My Fixed Rate Cash ISA matures at the end of the month and Dunfermline are offering me a choice of:
Fixed Rate Cash ISA 12 months at 3.2%
Cash ISA - Earn up to 0.25% variable

I can't understand why anyone would want the second option. I've searched the details and can't see that it's paying O.25% above RPI or anything. Am I missing something here?

The first option is the opportunity to reinvest all or some of your current balance, on maturity with them in a product not available directly to exisiting/new customers (your getting an extra 0.2%) - its for maturing funds only.

It has (if I recall) the same T&C as your existing FRISA - eg, 60 days loss of interest on any amount withdrawn within the fixed term.

The second isn't so much an option but what will happen if you choose to do nothing - it will revert to their standard "no strings attached" Cash ISA at 0.25% for £3k+

http://www.dunfermline.com/savings/isa-3.aspx

If you don't want to reinvest under the T&C on offer then let it mature and look for a new home by way of transfer as soon as you can thereafter.


FF

Chriskim

Thank you FF. I think the offer of 3.2% is not bad for 12 months and I don't want to access the money, so I will probably take up the offer.

I bet they like it when people do nothing and they get away with .25%

ChiefGrasscutter

Chriskim wrote: »

Thank you FF. I think the offer of 3.2% is not bad for 12 months and I don't want to access the money, so I will probably take up the offer.

I bet they like it when people do nothing and they get away with .25%

Judging by some of recent questions on this site...
In a year time those that did nothing be on here outraged that they only got 0.25%.....and claiming that they werent properly informed, it is outrageous that the banks can act like this and they want compensation etc etc.