Nationwide pulled bond rate despite inviting us to roll over

Primrose

I'm really hacked off with Nationwide. We had a bond maturing with them on Dec 17th & they invited us to roll it over. We responded in the affirmative yet they've now contacted us saving the rate has been reduced. I think this is sharp practice. I could perhaps understand them pulling the rate for new applicants, but to do this to an existing customer in the throes of simply rolling over is not playing the game. Is this cause for a formal complaint?

I did check around for a better rate elsewhere but as has happened in the past, feared that rates I'd found would have been pulled by the time the money had cleared through our current account and been redirected. Has this happened to anybody else?

innovate

If you have written evidence that they offered you a roll-over at the same rate / terms etc, you would have a case for complaint.

But it would be most unusual in the current savings climate if rates didn't drop at the first possible opportunity.

opinions4u

Primrose wrote: »

I'm really hacked off with Nationwide. We had a bond maturing with them on Dec 17th & they invited us to roll it over. We responded in the affirmative yet they've now contacted us saving the rate has been reduced. I think this is sharp practice.

The difficulty they have is that when they ask for your maturity instructions they don't know what the rate is going to be.

I could perhaps understand them pulling the rate for new applicants, but to do this to an existing customer in the throes of simply rolling over is not playing the game.

Why should a new customer miss out?

Is this cause for a formal complaint?

There are two things that, for me, would justify a complaint.

1. If they have at any time guaranteed the old rate to you.
2. If they have failed to explain that rates could change between maturity instructions being issued and the maturity date.

Another concern could be if, in a rising rate environment, they made you stick with the original rate advertised and didn't allow you to benefit from a new and higher rate available at maturity.

I'd expect your maturity letter to cover off both points.

sabretoothtigger

Its a deal breaker then, tell them to cancel the bond

ANGLICANPAT

This happened to us .We thought the written offer of renewal at a certain rate, would hold good till the existing bond ended. Wrong, they expect you to reply straight away.

arcadia00

Yep this happened last year to my mother. If they cant hold the rate for the three weeks or so the renewal forms are out for then they deserve to have the cash pulled out. The one upside is there is always someone with a better rate than this cheap shower.

Gromitt

arcadia00 wrote: »

If they cant hold the rate for the three weeks or so the renewal forms are out for then they deserve to have the cash pulled out. The one upside is there is always someone with a better rate than this cheap shower.

I remember them sending me a letter advertising 2.75%, guaranteed for a year. A week later, it was reduced to 2.5%, and when my bond matured, it was 2.25%. Its now 2%.

To be honest though, I couldn't find anyone else with a rate higher than 2.75% for easy access. It seems now that only current accounts offer such high interest.

sabretoothtigger

After inflation and taxes 2.75% isnt high, is it even over 0% PA

Gromitt

sabretoothtigger wrote: »

After inflation and taxes 2.75% isnt high, is it even over 0% PA

I agree, but its still better than the highest 2.25% offered at the moment! and it was guaranteed for a year and not a fixed rate product, so you could add to it whenever you liked. Withdrawals were limited to 1 per year.