Post Office Online Saver Issue 5 Monthly %

Muppet81

Some time ago I recieved an e-mail telling me that the interest paid above account was going to reduced to below 2%. If I understood it correctly
At thi stage I had £80,000 in it but need instant access to about 13k in 2013

I started to look aroun and ended up opening a Derbyshire Online Net Saver Issue 10 account which gave 2.00% with instant access.

I have started moving the money accross in £10k lumps as this is the max I can transfer via my bank without paying a CHAPS fee.

Today I looked at the PO site and at the interest rate rate looks to be 2.66% or 2.63 gross effective on 25/2/13.

Could anyone advise please? Should I be moving my money over to the Deryshire yet? Or am I genuinly still getting 2.63% on what remains in the PO and how long for?

Any help would be much appreciated

innovate

Muppet81 wrote: »

Some time ago I recieved an e-mail telling me that the interest paid above account was going to reduced to below 2%.

Who was that email from?
I am only aware of a drop to 2.67%.
But the PO have proved they are awful with telling people about rate cuts.

badger09

Muppet81 wrote: »

Some time ago I recieved an e-mail telling me that the interest paid above account was going to reduced to below 2%. If I understood it correctly
At thi stage I had £80,000 in it but need instant access to about 13k in 2013

I started to look aroun and ended up opening a Derbyshire Online Net Saver Issue 10 account which gave 2.00% with instant access.

I have started moving the money accross in £10k lumps as this is the max I can transfer via my bank without paying a CHAPS fee.

Today I looked at the PO site and at the interest rate rate looks to be 2.66% or 2.63 gross effective on 25/2/13.

Could anyone advise please? Should I be moving my money over to the Deryshire yet? Or am I genuinly still getting 2.63% on what remains in the PO and how long for?

Any help would be much appreciated

Discussed at length here
https://forums.moneysavingexpert.com/discussion/4417857

and elsewhere - try a forum search for other threads

Muppet81

innovate wrote: »

Who was that email from?
I am only aware of a drop to 2.67%.
But the PO have proved they are awful with telling people about rate cuts.

Hello PAMELA From time to time we have to make changes based on the current financial market conditions. We have tried to resist making changes for as long as possible but, due to these current conditions, we are writing to notify you of a reduction to the underlying interest rate on your Online Saver account, effective 17 January 2013.Details of this change, including your old and new rates, are shown in the table below. Any additional bonus rate that may be applicable to your account is not affected and would be in addition to the rate in the table.The interest rate is variable. Details of your rate including any additional bonus rate will be shown on your account statement and the interest rate pages of our web site, [URL="wlmailhtml:{A2CC3BE1-38BA-4A53-AF88-155ADCE823D0}mid://00000072/!x-usc:http://t.yourpostoffice.co.uk/r/?id=h2d9a3a7,5d0c84,5e0a4d"]www.postoffice.co.uk/savings[/URL].If you have any questions about this change, your current rate of interest or are thinking of closing your account, please call us on 0845 602 3409*Yours sincerelyHenk Van Hulle
Head of Savings

Afraid the rates did not copy. States that for Saver Issues 1 to 8 the Previous gross monthly rate was 1.63% and it will reduce to 1.14%

Am I misreading all this? If I leave our money in the PO account will I still be receiving 2.67% untill the bonus period expires on 31/3/2013.

Muppet81

badger09 wrote: »

Discussed at length here
https://forums.moneysavingexpert.com/discussion/4417857

and elsewhere - try a forum search for other threads

Thank you. I have just read through that very informative post.

Furious now that I had started to transfer money out into an account only paying 2.%.

Will transfer it back ..... if I can?

innovate

Muppet81 wrote: »

Am I misreading all this? If I leave our money in the PO account will I still be receiving 2.67% untill the bonus period expires on 31/3/2013.

Yes, the bonus will still be paid until expiry of your bonus period

innovate

Muppet81 wrote: »

Will transfer it back ..... if I can?

You can - though you would probably lose more in lost interest whilst your money is in transit that you would gain.

If you have lots of energy, you could write to the PO and complain that they gave you confusing information and you feel you have lost out financially because of that.

I know of at least 2 people who did that, and they both got enough compensation to cover the lost interest, and a bit extra.

Muppet81

Thank you all for your help on this. I was getting very confused. Money is on its way back to Post Office account as it can sit there till the end of May and earn that little extra interest.

innovate

Ah right, I based my previous reply on you saying your bonus expires 31/03. If it's 31/05, it's worth moving the money back. I'd still complain though if I were you, because you lost money, and you had extra effort.

Muppet81

innovate wrote: »

Ah right, I based my previous reply on you saying your bonus expires 31/03. If it's 31/05, it's worth moving the money back. I'd still complain though if I were you, because you lost money, and you had extra effort.

You are totally correct and I will send off a letter of complaint. Thank you.

Muppet81

Just a quick update - received £25.00 compensation this morning. Thrilled! Thanks for the advice on here.