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Leeds BS Regular Saver saga
moneymichael
Posts: 1 Newbie
Hi all,
We have a Leeds Regular Saver (Issue 2) account, which pays 3.05% (including bonus). We got a letter this morning saying that they are discontinuing it, and that they will transfer the balance into a Flexible Tracker account, paying 0.85% unless we tell them not to, or we could consider a 3 year bond (2.00%) or a five year bond (2.60%). Because I look at MSE's best buys every now and again - the very reason we had the account in the first place - I know that Issue 3 of the same account is a best buy regular saver. So I phoned the Leeds up, assuming that they're stopping that one too. They're not.
I asked why they don't even mention in their letter that they have a later issue of the same account, which pays the same rate of interest (although the maximum monthly payment is lower). The answer was that you can't automatically transfer from one to the other, whereas you can transfer into the ones they mentioned - which is a rule of their making.
That seems plain wrong to me. They're stopping an account, not telling people that there is an almost identical account available, and even if you do discover that, they're putting barriers in the way to make it hard (or maybe impossible) to move the money. I am presuming at the moment that because you can't transfer, and have to open a new account for Issue 3, then you can't put the existing balance into it - you have to start from zero again.
Perhaps those who have invested in, or are thinking of opening the Issue 3 version should be aware that just as the saved balance is beginning to produce amounts that make it worth having made the effort to do all that drip feeding should know that the rug may be pulled from beneath you at any time!
We have a Leeds Regular Saver (Issue 2) account, which pays 3.05% (including bonus). We got a letter this morning saying that they are discontinuing it, and that they will transfer the balance into a Flexible Tracker account, paying 0.85% unless we tell them not to, or we could consider a 3 year bond (2.00%) or a five year bond (2.60%). Because I look at MSE's best buys every now and again - the very reason we had the account in the first place - I know that Issue 3 of the same account is a best buy regular saver. So I phoned the Leeds up, assuming that they're stopping that one too. They're not.
I asked why they don't even mention in their letter that they have a later issue of the same account, which pays the same rate of interest (although the maximum monthly payment is lower). The answer was that you can't automatically transfer from one to the other, whereas you can transfer into the ones they mentioned - which is a rule of their making.
That seems plain wrong to me. They're stopping an account, not telling people that there is an almost identical account available, and even if you do discover that, they're putting barriers in the way to make it hard (or maybe impossible) to move the money. I am presuming at the moment that because you can't transfer, and have to open a new account for Issue 3, then you can't put the existing balance into it - you have to start from zero again.
Perhaps those who have invested in, or are thinking of opening the Issue 3 version should be aware that just as the saved balance is beginning to produce amounts that make it worth having made the effort to do all that drip feeding should know that the rug may be pulled from beneath you at any time!
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Comments
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https://forums.moneysavingexpert.com/discussion/608697
The last few posts on this thread discussing this issue
P.S dont mention the 'invested' word for a savings account. People on here have been shot for less!0 -
Thank you Michael, useful and clear post.
One for the Ombudsman ?0 -
veryintrigued wrote: »P.S dont mention the 'invested' word for a savings account. People on here have been shot for less!
I got my passbook out to see if I had issue 2 or 3. It says on the cover "Investment Passbook"
Maybe its because it is a Building Society? 0 -
Thank you Michael, useful and clear post.
One for the Ombudsman ?
Hardly one for the Ombudsman as Leeds are acting within their terms and conditions. But other building societies such as Yorkshire and Coventry have certainly treated longstanding regular saver members better than Leeds has.0 -
I got my passbook out to see if I had issue 2 or 3. It says on the cover "Investment Passbook" Maybe its because it is a Building Society?
It is quite scary when even the professionals (in building societies, banks, NS&I) don't appear to know the difference between savings and investments.0 -
As you're a member, not just a customer, I think the buildiing societies like to think that you've made an investment in their business.
Leeds passbooks have always said Investments on them, although I don't know if this has changed since the recent rebranding.
Nottingham Building Society's passbooks used to say Investments as well, but now they say Savings on them instead, which is more correct.0 -
Archi_Bald wrote: »It is quite scary when even the professionals (in building societies, banks, NS&I) don't appear to know the difference between savings and investments.
Just possibly it's the people on here who are wrong, and depositing money into a long-term bank, building society or NS&I account actually is an investment. It's not saving - that was done to to acquire the spare money in the first place, but now it's being invested into something expected to grow over the long term.Eco Miser
Saving money for well over half a century0 -
Those with long memories may recall Alliance & Leicester's "smarter investor" adverts.0
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Those with long memories may recall Alliance & Leicester's "smarter investor" adverts.
Like this one?
https://www.youtube.com/watch?v=jZADp3wyrUo0 -
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