MSE News: Watchdog mulls probe into stingy savings accounts

waqasahmed

jimjames wrote: »

I saw the news story and wondered why there was no discussion of it - now realised why!

Bizarre that it's in bank accounts section not savings board. Maybe because current accounts pay more interest than savings accounts or ISAs?

This. Im still at a loss at why youd put money in to a Santander 123 ISA, as a Santander 123 customer - assuming youre going to put in a least 3K?

Consumerist

waqasahmed wrote: »

This. Im still at a loss at why youd put money in to a Santander 123 ISA, as a Santander 123 customer - assuming youre going to put in a least 3K?

Banks don't have to assume customers are intelligent; in fact, it's probably quite the opposite. How many people still ask their bank to recommend a savings account? The banks have to have something to offer even if it is not the best option for the customer.

It might still be a reasonable option if all other savings are maxed out at a higher net interest rate.

Milarky

Well let's get the basics right at least: 'banks' must have interest rate information as clearly and as in-your-face as possible at all times, and this 'shout out' practice could then remain. Some big building society with a presence in every high street, for instance, took down their in branch interest rate poster at one point during the decline in rates (presumably because they didn't want to 'tip off' passing trade)

The meagre reform I would propose is to push all banks to clean up their messy online (and paper) statements so that in future they follow an industry/regulator clear style, on essential information*: all statements would look alike in other words, apart from the 'signature' details placed discretely in one corner. 'your rate of interest' will be prominent and always in the same format.

*on only 1 sheet of A4, gentlemen, not six pages of dense screed like a modern day electricity bill either.