Bank of Scotland ISA Direct Reward - interest reduction

spaceboy

opinions4u wrote: »

Well why is it an absolute joke then? They are doing exactly what they said they would do.

No joke. Delivering exactly what it said on the tin. So nothing for you to whine about.

Actually I can whine about it because it's a sneaky way of making money from people - ie they hope people will forget/not realise when the slash an ISA's interest rate to a fraction of a saver account... This is something I seriously dislike about banks. They know a lot of people are very busy and will forget. And they award themselves huge bonuses for this sort of money making caper.

Now, I need to change my ISA. Why cant I change it to a Halifax one?

opinions4u

spaceboy wrote: »

Actually I can whine about it because it's a sneaky way of making money from people

They are up front about it. They tell you at the start. They remind you at the end. The put the rate on your statement and on your online banking secure page.

Too busy? Can't be bothered more like.

Now, I need to change my ISA. Why cant I change it to a Halifax one?

Have you asked Halifax if you can?

Miss_Poohs

Why do some people have to sound so brutal? It puts people off asking questions for fear of ridicule.

YorkshireBoy

spaceboy wrote: »

It's currently 3% but I got a letter a few weeks ago saying it's going down to 0.5% on 1st May this year! Absolute joke. Going to transfer the money to my Online Saver which gives 2.8% but not tax free.

Do I have any other options?

Your options are clearly given in the letter you refer to. I quote...

"...why not visit us at www.halifax.co.uk/isaoptions..."

If you go there you'll see you can switch to their 'ISA Saver Online' (from the comfort of your armchair!) and maintain your 3% rate for another year. And best of all there's a 2.75% guarantee in the form of a fixed element to the rate.

So, in summary...

1. They tell you at the outset what the rate will drop to and when.

2. They write to remind you well before the rate drops.

3. They make it really easy for you to maintain the existing rate.

And all you have to do is to read what they send you...all of it, not just the headline or first sentence/paragraph!

mr_fishbulb

spaceboy wrote: »

Actually I can whine about it because it's a sneaky way of making money from people - ie they hope people will forget/not realise when the slash an ISA's interest rate to a fraction of a saver account.

It's because of these people who forget that banks can give a higher interest rate in the first place. There are two options:

1 - Everyone complains that it's not fair that banks can drop the bonus rate, and so banks are forced to do something about it. However the reason banks can offer ~3-3.5% on the accounts with the bonus interest rate is precisely because some people don't notice when it drops. Therefore you won't find any accounts offering ~3-3.5% any more.

2 - Just accept it's what banks do and take advantage of it. Transfer your current ISA to one that's paying a higher rate. Keep an eye on the interest rate on that one, and then transfer again once it drops. Bank of Scotland are hardly making it difficult for you - they sent you a letter telling you what they are doing.

Mr_K

To be honest it'd be a fairer society, if banks didn't pull these stunts and we all got a fair, if lower rate. I know there won't be many fans of that on these forums. However its become an increasingly selfish society in which everybody is out for themselves, including the banks. Depressing i know, as ever the weakest most vulnerable and least savvy will go to the wall, welcome the Camoron's Britain (but I digress......)

As mentioned keep an eye on it each year and play them at their own game or go for an account that doesn't have a bonus, be prepared to take a 1% cut in interest though.

Don't see any reason why you can't transfer to the 3% Halifax account, it is exactly the same bank as BOS. I've got a BOS account I can operate through Halifax banking.

Try this Halifax transfer form with your BOS account details (might not work but worth a try):-
http://www.halifax.co.uk/savings/accounts/cash-isas/ISAoptions/

opinions4u

Depressing i know, as ever the weakest most vulnerable and least savvy will go to the wall, welcome the Camoron's Britain

The evolution of savings accounts with an initial bonus structure came to the fore under a Labour government.

Just saying.

talana

Mr_K wrote: »

To be honest it'd be a fairer society, if banks didn't pull these stunts and we all got a fair, if lower rate. I know there won't be many fans of that on these forums. However its become an increasingly selfish society in which everybody is out for themselves, including the banks. Depressing i know, as ever the weakest most vulnerable and least savvy will go to the wall, welcome the Camoron's Britain (but I digress......)

Well if people don't like accounts with the initial bonus rates, there are still accounts with a "clean" rate, ie with no initial bonus.
For example, the Virgin Money easy access e-ISA at 2.85%
So you/the OP can choose that option...no great problem.

spaceboy

opinions4u wrote: »

The evolution of savings accounts with an initial bonus structure came to the fore under a Labour government.

Just saying.

Exactly. Strange comment blaming Cameron!

NoName

Mr_K wrote: »

Try this Halifax transfer form with your BOS account details (might not work but worth a try):-

I have just done this and it seems to have worked. When looking at my BoS online banking the previous ISA shows as Halifax anyway. Seems as I had the same one as you Spaceboy.