Punjab National - back tracks on T&Cs issue.

soulsaver

PNB Premium Deposit Sheme - available June 2012 as a stepped fixed interest account, impressive interest rates, and pen free w/d annually.

However they didn't pay the interest at the anniversary of the opening and when queried stated that the terms were 'interest calculated annually & payable at maturity...'

As discussed here: https://forums.moneysavingexpert.com/discussion/4929719

When I opened this account, luckily, I kept copies of their T&Cs that were emailed to me (not available on their webby at the time). And I kept clarification emails regarding how interest was to be paid & 'added to the deposit yearly till maturity' (sic).

I started a dispute with them that culminated in them eventually agreeing to pay the interest into my account annually & issue appropriate tax certificates, which has now happened (today 22/5) for the first year June 2012-13.

Result: Under HMRC current rules, it saves me c£4k extra tax in 2017 as I would have to have paid 40% on ALL the interest!

So? Well I'm still after them for compensation for the stess & inconvenience, which they are trying to ignore... and they only offered an apology when prompted to.

However they did say in fairness they are writing to ALL Premium DS customers to offer them the choice of annually paid interest.
So the posters who would have preferred that option for tax purposes should now get the choice...