Virgin E Savings rate drop?

S_uk

I opened a virgin money easy access e savings account earlier this year with the 2.85% rate. Just noticed on their website the rate for this account is now 2.60%, on some sites it refers to this being an 'issue 2'. On the Northern Rock website it lists the original account as being under previous accounts (it lists the original issue as being withdrawn on 10/5/12). Sorry if a silly question but how long with my savings attract the 2.85% rate for, and does it mean the rate on my savings is likely to drop soon? Thanks

colin79666

You are still getting 2.85% Gross. You can find the rates for all accounts here: http://www.northernrock.co.uk/savings/existing/find-your-existing-account/

The issue 2 account you refer to is a new account for new subscribers, existing customers are still on their old rate. Fairly good news really as many banks would have taken the opportunity to cut existing customers rates as the account is described as "variable".

gkerr4

interesting - that rate finished on the 10th of May - so only recently taken away.

I opened the e-saver an stuck 60k in it at 2.82% (took the monthly option) - i noticed this evening that it shows 2.25% net - which is still the 2.82% gross rate - so log on and check what it says at the top left corner of the screen to make sure.

wonder if they will downgrade the accounts we have? or if any "new money" is paid into a lower rate?

gkerr4

just realised I haven't answered any of your questions and actually just repeated them.

sorry

opinions4u

They will give you two months written notice of any rate reduction before they apply it to your account.

12.5 We will write to advise you of a change in interest rate on your account.
(a) If the rate is reduced then we will give you notice of the change at least equivalent to the notice period if any on your account.
(b) Where you have no notice period we will give you at least two months notice of the change, after the expiry of which period you will be deemed to have accepted the change. In the meantime you will be free to close the account immediately without charge.

http://www.northernrock.co.uk/savings/pdf/Virgin_Easy_Access_E_Saver_Issue_2-Terms_Conditions.pdf

nilrem_2

It will be rather unpopular if they have got lot's of customers to switch to them only to reduce the rate soon afterwards.

They will have achieved little because many of the customers such as myself who switched to them will be so disgusted they will go elsewhere.

Nearly_Old

gkerr4 wrote: »

interesting - that rate finished on the 10th of May - so only recently taken away.

I opened the e-saver an stuck 60k in it at 2.82% (took the monthly option) - i noticed this evening that it shows 2.25% net - which is still the 2.82% gross rate - so log on and check what it says at the top left corner of the screen to make sure.

wonder if they will downgrade the accounts we have? or if any "new money" is paid into a lower rate?

I should find out tomorrow as I've just set up a payment into our 2.85% savings account.

tsmiggy

Thats interesting i am also on the 2.85% rate,but it says 2.17% in my corner,any ideas why?

Nearly_Old

tsmiggy wrote: »

Thats interesting i am also on the 2.85% rate,but it says 2.17% in my corner,any ideas why?

Just checked mine and and that has also changed to 2.17% (net) or 2.72% (gross) - this appears to be the rate for the Everyday Access Online A/c that was withdrawn on 05-01-12.

Everyday Access Online A/c was replaced with the 2.85% Virgin Easy Access E Saver on 05-01-12 and this is the A/c that was closed on 10-05-12. When I logged in the A/c name was showing as Everyday Access (2.17% net).

It looks to me like it could be a system problem as the account that has just been withdrawn has been "transferred" back to the account that it originally replaced!

Anyway secure message sent so wait and see - either it will get sorted or the account will be closed.

MrRee_2

Great isn't it!?

I bung £150k into this account at 2.85% as it was 'Virgin Money' and I trusted they would treat us fairly ....... not saying they haven't as yet, but it would be a poor show if I had to move it again!!

opinions4u

MrRee wrote: »

Great isn't it!?

I bung £150k into this account at 2.85% as it was 'Virgin Money' and I trusted they would treat us fairly ....... not saying they haven't as yet, but it would be a poor show if I had to move it again!!

In post #5 I have provided a link to the T&CS together with a cut and paste of their requirement to give at least two months written notice of a rate reduction.

No need to get upset.

12.5 We will write to advise you of a change in interest rate on your account.
(a) If the rate is reduced then we will give you notice of the change at least equivalent to the notice period if any on your account.
(b) Where you have no notice period we will give you at least two months notice of the change, after the expiry of which period you will be deemed to have accepted the change. In the meantime you will be free to close the account immediately without charge.