Norwich & Peterborough BS

Walshy

Just discovered that Norwich & Peterborough Building Society has decreased interest rates on their savings accounts.

For example, I have a Mini Cash ISA with them which was paying 4.65%(which is pretty poor anyway compared to others on the market). From 23/03/05 this is now 4.55%. Another change is the Netmaster Gold Savings Account. Was 5.10%, now 4.85%.

There has been no Bank of England Base rate change so this really annoys me. So much for a mutual building society looking after its members!!

ED

Grossly unfair of Norwich & Peterborough BS. My complaint has already been written and sent to them, seeking an explanation.

0.25% having been taken off the rate for the online savings account named 'NetmasterGold Saver II' renders Norwich & Peterborough uncompetitive. Granted, the new rate of 4.85% matches Coventry Bdg Soc's NetSave account, but Standing Orders + BACS from there arrive within 3 days inclusive (out Monday, in Wednesday). In comparison, from Norwich & Peterborough SOs + BACS take an extra banking day (+ weekend if it intercepts).

0.20% reduction in rate has occurred for N&P's regular, monthly 'Super Saver II Account'. This is particularly galling for customers motivated to aim for a balance of £10,000+ in the account (via up to £500 per month deposits), to achieve a competitive higher-tier rate, but now the goalpost is worse (@ 5.35%) than by continuing to save with cahoot (5.65% in 'Introductory Rate Savings' account until September) or with Nottingham BS (5.50% in 'Post It' account for 1 year+). True those competitor accounts are not currently available for newcomers, but OK for those holding them already.

It's particularly disappointing that Norwich & Peterborough Bdg Soc have sneakily dropped their rates on 23rd March, so far without notifying customers (even those whose e-addresses they possess) because the Society has one of the most user-friendly sites I've so far encountered.

ED

Walshy's helpful notification of drastically dropped rates at Norwich & Peterborough BS resulted in ...

Balshy complaint from me to the Society. I'm still disappointed, but impressed that an extensive response was sent just 65 minutes later, including :

"Although we have taken the opportunity to widen the interest margin on savings rates, at other times savers have gained from interest rate changes. For example, in 2003, there were two cuts in Bank Base Rate totalling 0.5%. Rather than matching the 0.5% cut in Bank Base Rate, we dropped our savings rates by only between 0.3% and 0.4%."

newfoundglory

Woah, this is very naughty of them. I hadn't even noticed! :eek:

ED wrote:

Walshy's helpful notification of drastically dropped rates at Norwich & Peterborough BS resulted in ...

Balshy complaint from me to the Society. I'm still disappointed, but impressed that an extensive response was sent just 65 minutes later, including :

"Although we have taken the opportunity to widen the interest margin on savings rates, at other times savers have gained from interest rate changes. For example, in 2003, there were two cuts in Bank Base Rate totalling 0.5%. Rather than matching the 0.5% cut in Bank Base Rate, we dropped our savings rates by only between 0.3% and 0.4%."

Are you sure they didn't just copy and paste a response?!? :rotfl:

ED

newfoundglory - indeed, I suspect part of the message was copy+paste, but they have taken the complaint seriously, concluding (unsolicted) with :

"I hope this clarifies the situation but should you remain dissatisfied please follow our official complaint procedure in Our Service Promise booklet that I have sent to you today."

It takes almost 2 years (20 months) for customers with N&P's regular monthly saving account to achieve a £10,000 balance (for the high-tier rate) - far more time, if less than £500 is deposited per month, and it can be as little as £20 p m. Therefore, a 0.20% drop in rate is very unfair without advance notice. Legally not wrong, but demotivating for the savings ethic.

5.10% becoming 4.85% for the online saver seems, as Walshy indicated, most unfair.

The more N&P customers send complaints, the greater the Society may reflect on their error and rectify, at least to some extent.

Walshy

I'm gonna write a letter when I get home from work tonight.

The Cash ISA rate is what gets me. They should be increasing this rate to match competitors, not decreasing it.

When the ISA was first launched in 1999 it had a market leading rate of 6.75%, now its very, very average.

bazhance

And they are not alone, IF have just put down their isa rate, also one of martin's best but isa's with the abbey does not let the interest stay in the a/c so if you put in £3000 this year you would still only have £3000 at the end of the year so over a number of years your tax free savings would not increase.SO as boring as it is read and re-read ALL the small print.

ED

Walshy - hope your letter-writing goes well - and achieves a truly fair response.

Norwich & Peterborough BS wrote to me, yesterday :

"At this time the Society have no plans to increase the current interest rates being paid on our ISA accounts"

This was after N&P read the ISA thread here :