NatWest Documentation Error - Again!

alanq

Following the fiasco a year ago when NatWest repeatedly quoted incorrect interest rates online and in leaflets for its eSaver account I had hoped that the "Helpful Bank" would have checked its documentation more carefully by now to avoid further complaints and compensation claims.

I noticed that the 1-year fixed rate bond issue 302 had what to me was an obvious error. Annual interest was quoted as AER 3.40%, Gross 3.40% Interest paid on the last working day in April and on maturity on 29th November 2012. Customer services could see nothing wrong this!!! No offer to investigate and if necessary to correct. Just a number of unconvincing excuses for why the documentation was right and I was wrong.

By my calculations:
If the AER is 3.40% then Gross is 3.372%.
If Gross is 3.40% then AER is 3.428%

Monthly interest AER and Gross were shown correctly.

Issue 302 was replaced with 305 today. The same error applies though the calculation would be different because the maturity date is different.

Unless someone is depositing a vast sum the difference will only be a few pounds but this lack of care does not inspire me to trust any other information NatWest gives.

All of the above ignores NatWest's trick of having a period when interest is paid at 2% for at least a few weeks before the start date thus making the headline rates better than what is actually achievable.