Post Office easy access 3.17% AER account (now closed to new applications)

badger09

innovate wrote: »

It's gone into my 2.85% Natwest one for now. From whence it shall be spent on a new kitchen and a couple of pairs of shoes and handbags before long. Might as well cheer myself up a bit

Didn't manage to open that one I think initially there were problems with the website (surely not ) then I was in Hong Kong spending my son's inheritance

A new kitchen and some retail therapy sounds pretty good to me -but then that is the 'we're all in this together' lot's not so cunning plan, isn't it :eek:

WaltD

savetilibleed wrote: »

Today, six days AFTER the interest rate drop, they get around to emailing me!! Thank goodness for MSE forum!!

I got my email today - 7 days after the rate drop!

I have closed my account this morning.

JGal

Just done some calcs and if you transfer from a 2.67% account to a 2.85% paying one it's going to take 46 days in the 2.85% to recoup 3 days total lost interest (due to transfer time) compared to leaving it the 2.67% account, and 61 days for 4 days lost interest. Both for someone paying 20% tax on savings, irrespective of the amount transferred, i.e. 46 and 61 days respectively before you start benefiting - before that you're losing.

Makes you think twice about switching sometimes for marginal gains on interest. Especially if the account you transferring into has a variable element which is liable to reduce.

JGal

From Online Saver Issue 5 "Key information" 15062011/a.

Changes in the Interest Rates

31) We may change interest rates on your Account (and introduce or change different rates applicable to different Account balances) for any of the following reasons:

a) if there have been changes in the Bank Base Rate or if we have good reason to expect changes;
b) if changes have been announced by our competitors in the rates paid on accounts that are broadly comparable with your Account;
c) if we need to reflect any regulatory requirements or
guidance, a decision or recommendation of any court or
ombudsman or any change in taxation or the law that impinges on the interest rates that we pay to investors;
d) to ensure our business is sustainable in the long term;
e) to reflect the rates being paid on our other accounts so as to ensure that the interest rates we pay reflect the features of our accounts (so that, for example accounts with longer notice periods receive a higher rate of interest, other features being the same).

Where we make an interest rate change on your Account that is to your disadvantage we will notify you of the change at least 14 days before it is due to take effect in accordance with the provisions of Conditions 60 – 66.

If you object to any such notified change, you must inform us with 60 days by writing to us and we will treat this as notice of your intention to terminate the Agreement and close or switch the Account. You will not be charged for closing or switching your Account in these circumstances. In the absence of notice to the contrary, you will be deemed to have accepted such change with effect from the notified effective date.

32) We do not have to change the interest rate of your Account when the Bank Base Rate or other interest rates change. However:
i) We will notify you if the margin between the interest rate on your Account and the Bank Base Rate has increased to your disadvantage by more than 0.5% looking back:
• over the previous 12 months, or, if that is shorter,
• to the last time we notified you under this clause.
ii) We will notify you under this clause by writing to you
at your Registered Address within a reasonable time and we will also:
• tell you about our other Post Office® savings accounts (and we will help you to switch to one of these if you want to); and
• remind you that you can withdraw all the money in your Account if you want to (for which there is no notice period or charge).

33) Where applicable, we will notify you of any change to interest rates on your Account by:
a) updating the Website; or
b) updating information provided through the Customer Service Centre; or
c) by placing advertisements in the Daily Telegraph and the Daily Mail (or any other two daily newspapers circulating throughout the UK).

34) An accidental error or omission in notifying you of a change to the interest rate on your Account will not invalidate the change.

Gromitt

JGal wrote: »

Makes you think twice about switching sometimes for marginal gains on interest. Especially if the account you transferring into has a variable element which is liable to reduce.

I thought the same thing.

10K @ 2.67% = £267. Minus 20% tax £213.
10K @ 2.80% = £280. Minus 20% tax £224.

Net monthly gain 91p (after the time where your losing)

Considering my 2.8% account expires in April, its not worth taking it out for the marginal increase.

SnowMan

The Post Office rate cut was mentioned on radio 4's Moneybox yesterday (starts 4 minutes 38 seconds in)

_Paul_Lewis wrote:

And we've had complaints from listeners saying that the first thing they heard of it was an email after the cut had been made ..........................


Well we raised the matter with the Post Office after we checked on the rules we think they should have written to all customers giving them notice. The Post Office has told us after a bit of mmmmming and ahhhhhing it is reviewing the matter and takes it very seriously

d63

and even more irritating is that they are now reducing the rate on their 30 day notice reward saver 2 account for the second time in less than a month all without any prior notification (well, without any notification to me at least), first on 17th jan down from 3.0% gross to 2.74% and then on feb 4th it seems it will be going down again to 2.49%.

veryintrigued

veryintrigued wrote: »

Just been checking when the 1.52 bonus rate disappears on this account

I went onto the Post Office website and it seems that on the 17/1/13 the overall interest drops to 2.67 from 3.17.

I wasnt expecting that. Am I being dafter than normal as I havent been advised of this.

http://www.postoffice.co.uk/interest-rates#Online Saver Issue 5 - monthly interest

So have we been saved? Seems post #13 on this thread (below in the ISA section) indicates this? Has anyone any clarity on this? i.e. is it for all and how long is it for?

https://forums.moneysavingexpert.com/discussion/comment/58981179#Comment_58981179

innovate

veryintrigued wrote: »

So have we been saved?

Probably means we will get a free lolly whilst they hastily try to pretend that they care about notice periods.

http://forums.moneysavingexpert.com/showpost.php?p=59006955&postcount=13

There's no way they will delay the cut for more than a few days, if they will delay it at all.

veryintrigued

innovate wrote: »

Probably means we will get a free lolly whilst they hastily try to pretend that they care about notice periods.

http://forums.moneysavingexpert.com/showpost.php?p=59006955&postcount=13

There's no way they will delay the cut for more than a few days, if they will delay it at all.

Thanks for posting the exact link to the post Innovate.

Can I ask how you do that please? Do you have to 'manually' amend the thread.