Does anyone remember...?

dickyback

Hi all,

I've just been talking to someone who is convinced that a Savings provider was in the news for having a 12 month 'regular saver' account which, on maturity, automatically rolled in to a bond and so was locked away at a rate unspecified at the time of taking out the regular saver.

Can this be true..?

Has anyone else heard of this..?

Does anyone know who the provider might have been..?

I'm not convinced but my friend is adamant* that this was in the news and being looked at in a dim view by regulators.

Any thoughts or memories gratefully received.

DB


*for the avoidance of doubt, my friend isn't Adam Ant

Reaper

Not that I recall, however in the past there have been fixed term savers that rolled into another fixed term saver if you were not quick enough getting your money out. Some people complained they did not receive notification that the term had come to an end.

Could that be what your friend is thinking about?

dickyback

Thanks Reaper. It might be that...but he was pretty specific about it being a regular (drip fed) account that accumulated over 12 months and then the sum total got rolled into a bond.

It seems incredibly unlikely but he's never usually mistaken (and great to have on your pub quiz team).

I'd like to know who it is so that I can make sure I can give them a wide berth as a matter of principle.

Cheers

DB

alanq

When was this "in the news"? Controls on dodgy practices are a lot stronger today than a couple of decades ago.

Perelandra

Not the same thing that you're talking about, but an equally "nasty" product are these from the Bank of Ireland:

http://personalbanking.bankofireland.com/save-and-invest/savings/fixed-term-savings-accounts/special-term-account-3-year/

Which lock you in for three years, but the interest rate in years 2 and 3 is not determined at the beginning.

At least, it looks nasty to me, but I don't really understand (or care to understand!) about the DIRT interest laws.

dickyback

alanq wrote: »

When was this "in the news"? Controls on dodgy practices are a lot stronger today than a couple of decades ago.

This was (apparently) in the news in the last year or two...which is partly why I found it so hard to believe...

opinions4u

Perelandra wrote: »

Not the same thing that you're talking about, but an equally "nasty" product are these from the Bank of Ireland:

http://personalbanking.bankofireland.com/save-and-invest/savings/fixed-term-savings-accounts/special-term-account-3-year/

Which lock you in for three years, but the interest rate in years 2 and 3 is not determined at the beginning.

At least, it looks nasty to me, but I don't really understand (or care to understand!) about the DIRT interest laws.

On sale in a country where I don't do business.

innovate

opinions4u wrote: »

On sale in a country where I don't do business.

You and me both, along with most of the rest of MSE