MSE News: 5 million RBS & NatWest savers to be switched to low-paying accounts

Five million NatWest and RBS customers will be switched to new accounts in January paying well below the best buys ...
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5 million RBS & NatWest savers to be switched to low-paying accounts

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  • jimjamesjimjames Forumite
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    It gets a bit tedious to constantly ask why MSE don't mention the best paying current accounts which for most people are the best paying option.

    Yet again another article that doesn't do so as per the line below quoted from the article. Please MSE if you are serious about getting the best deal for readers make sure the options that give the best return are shown - or let us know why you are not doing so. The best return is 5% with 4% possible too so why is only 3% mentioned?

    The top easy access savings account pays 1.45%, though you can get 3% via a current account.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • edited 8 September 2014 at 1:48PM
    Former_MSE_PalomaFormer_MSE_Paloma Former MSE
    531 Posts
    I've been Money Tipped! Newshound!
    edited 8 September 2014 at 1:48PM
    Hi Jimjames,

    Thanks for your post - you're absolutely right, there are higher paying savings accounts such as 4% AER on up to £5,000 at Lloyds and 5% AER on up to £2,000 at TSB. But as the limits are far lower (ie £5,000 and £2,000), this is why we mention the 1.45% AER and 3% AER as the balance amounts are much higher. Many thanks, MSE Paloma
  • Archi_BaldArchi_Bald Forumite
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    The lower limits are mostly irrelevant for most people as most people don't have tens of thousands in cash savings. And even if they did, there is very little excuse for passing on 4 and 5% with £9,000 (or may be even £11,500 if you still can do FlexDirect) of your savings.

    Although not totally comprehensive either, this Telegraph article from yesterday's paper sounds a lot more helpful for most people.
  • SystemSystem Forumite, Community Admin
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    I'm hardly a big fan of RBS but they look like a bunch of old, uncompetitive accounts to start off that seem to have broadly similar interest rates to what they are being converted to.

    Banks (generally) don't advertise the interest rates of closed issue accounts - by converting them to an active product people can easily see their (poor) interest rate in branch or on the website.
  • edited 8 September 2014 at 3:18PM
    jimjamesjimjames Forumite
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    edited 8 September 2014 at 3:18PM
    MSE_Paloma wrote: »
    Hi Jimjames,

    Thanks for your post - you're absolutely right, there are higher paying savings accounts such as 4% AER on up to £5,000 at Lloyds and 5% AER on up to £2,000 at TSB. But as the limits are far lower (ie £5,000 and £2,000), this is why we mention the 1.45% AER and 3% AER as the balance amounts are much higher. Many thanks, MSE Paloma
    It's actually £4000 at TSB as you can have 2 accounts. When the average savings balance is under £2000 most people could use a 5% account for all their savings. Not everyone has the luxury of tens of thousands of cash in the bank.

    Surely you'd mention that account even if only to highlight to those who may find it useful. If readers assume they are getting complete information from mse then they will wonder why.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • PincherPincher
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    The 5% Nationwide FlexDirect and 6% Regular Saver from First Direct are just marketing loss leaders to grab headlines.
    The roughly £120 in interest (before tax) is roughly comparable to a Quidco cashback. Both are one year only, so they have basically bought you for £120.

    Must say that I am hooked on the Santander 123 current account big time. Also, I am spending so much on the credit card, I already filled up the credit limit in four months, chasing cashback. The 18 month 0% on purchases is now meaningless, as I am paying off large chunks just to make room so I can get more lovely 3% casback on petrol.
  • colstencolsten Forumite
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    Pincher wrote: »
    The 5% Nationwide FlexDirect and 6% Regular Saver from First Direct are just marketing loss leaders to grab headlines.

    It doesn't matter, does it, whether you get the higher interest due to a Marketing campaign - what counts is that you get the interest.

    FlexDirect does only last 12 months but you can close the account at the end of 12 months, and apply for another one after a further 12 months (assuming the offer is still on next Feb, or whenever your 12 months are up). Together with the Quidco cashback, it's - in financial terms - the most unbeatable savings offer for £2,500 in the market.

    The First Direct Regular Saver is a "rinse and repeat" account - i.e. once your account has matured, you just open another one. Many people have had more than half a dozen of this account in so many years. It is a great account even for people with big lump sum savings, as you can boost your interest income by dripfeeding the Reg Sav from e.g. a Santander 123.
  • ConsumeristConsumerist Forumite
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    Seems to me that the vast majority of customers in these old closed RBS accounts just couldn't be bothered to move to a better rate or they would have done so long ago.

    At the generally abysmally-low rates currently available on savings they probably just can't be bothered to move to a better-paying account let alone the bother of opening a current account with a different bank.

    On balance, I'd say RBS/NatWest are probably doing them a favour. My bet is that most will do absolutely nothing, anyway.

    While the majority don't seem to care what rate they get, I get to cherry pick whatever is actually available. Suits me fine.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • PincherPincher
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    colsten wrote: »
    The First Direct Regular Saver is a "rinse and repeat" account - i.e. once your account has matured, you just open another one.

    Easily done, so I do. Probably on the fourth Regular Saver by now.

    Tried the FlexDirect, and it's just too much hassle to repeat every year. Might do it next year as a Recommend a Friend deal though.
    £100 split two ways, then £125 interest before tax. Grooming a TESCO bank account as we speak: two direct debits, as ordered. Will they arrest me for abusing one year old current accounts? So young, and sold down the river already.
  • Archi_BaldArchi_Bald Forumite
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    Pincher wrote: »
    Grooming a TESCO bank account as we speak: two direct debits, as ordered.
    What do you need two DDs for on a Tesco bank account? Or are you referring to Tesco savings accounts that you will feed by DD?
    Pincher wrote: »
    Will they arrest me for abusing one year old current accounts?
    there is no minimum period of time you need to hold a current account for.
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