Nationwide Loyalty Saver 0.3% rate drop

bowlhead99

bristolleedsfan wrote: »

@ bowlhead99

It is a reasonable expectation that a "loyalty" savings account launched by any Building Society where a continuous membership length of 5,10,15 years is stipulated as a requirement to be eligible for the account remains a higher paying savings account than all other savings accounts subsequently launched by that B.S ( And current live Savings Products) even if it means making it a closed issue to new investors.

I can't see other savings accounts offered by the Nationwide which pay greater than the 1.2% on equivalent terms for equivalent amounts of money (i.e. ignoring ISAs, regular savers, current accounts etc)

For many months, Issue 1 which could only be opened at a branch paid higher rates than subsequent Issues, now all Issues pay the same mediocre rate.

If they offered say 10% interest in the high interest high inflation days and then in later years the market rate is only 1% you would expect them to be allowed to reduce their rate. That's what variable rate instant access accounts are all about. So reducing a rate should not be a big problem per se.

But you want your issue 1 to pay more than someone else's issue 2? If you cross the 15 year threshold last year and I cross it this year we are both in the 15 year plus category so it would seem unneccesarily complex if you always get paid a bit more just because you have 15.5 and I have 15.1 years. Lots of different product issues paying lots of different rates is a headache.

Before you say re it being Instant Access in comparison to other Savings Accounts Nationwide subsequently launched, Nationwide could have launched it ( Issue 1) as limited access, requiring notice etc etc etc.

Yes, they could have piled on more and more restrictions and made the product less attractive. If you're happy to accept restrictions for a better rate, you can shop around (and are doing). But they can't second guess whether you want the restrictions. If they made it restricted to offer a bit more percentage some people would still be going "Bah humbug, only 1.5% and I can't even access my money whenever I want, this is not loyalty this is a con."

http://www.thisismoney.co.uk/money/saving/article-2212757/Nationwide-new-Loyalty-Saver-account-pays-oldest-customers-2-6.html

http://www.mirror.co.uk/money/city-news/nationwide-punishes-thousands-loyal-customers-3025785

The thisismoney article you linked said that the average of the top 5 instant access accounts was 2.78% at the time and commented that Nationwide was 'not far off' with their 2.6. So, they were not perceived as terrible. And as the 'savings champion' in that article was quoted as saying "it’s also refreshing to see this account going back to the simple savings realm – no bonuses or restricted withdrawals". You said they could up the rate and give us restrictions but the 'savings champion' was happy they didn't have restrictions.

The market has changed since then and all rates are lower unless you are still locked into an old fix, so what they paid in 2012 is irrelevant. Inflation in 2012 was higher, market interest rates were higher, the economy was different yadda yadda yadda.

So, what is the average of the top 5 instant access unlimited access accounts at the moment and how far off the pace are nationwide with their 1.2%? I would suggest not far.

As mentioned before, I'm not saying you shouldn't move, vote against the directors etc etc if you don't like the product. Just that they don't owe you a living and you can't expect them to arbitrarily pay well above market rates out of blind loyalty just because they could afford to pay a rate over 2% or 3% or 5% in years gone past. After all, many consumers exhibit zero loyalty to them, as evidenced by this and other threads.

On the interest rate change notice period thing, if they are telling the truth that they can change the rate with 14 days notice or 30 days notice or whatever (their T&Cs say they can move their rates with market conditions if they advertise it), and that is at odds with what you understand the treating customers fairly regulations say for this particular type of account, then you could raise this to the FOS after they have given you a final answer on your complaint.

In this day and age if there are a plethora of great rates for new customers out there at the moment with rival providers, pretty much all of which can be opened same day, and your existing account is instant access, you don't really need a month to find 'alternative arrangements'. The x days notice is really just to stop a situation where people are away on holiday or forget to open their post or read the internet and are unaware that a rate is changing and then still having their money stuck in the account when the rate drops out of nowhere which is a complete surprise to them.

Presumably if you and others are on here talking about how the rates are changing in April and there are much better accounts out there you will all be doing something to move your money into those better places and are not at risk of suffering any imagined 'loss' whatsover.

le_loup

Cor blimey, it's hard work, ain't it?

Uxb

If lots and lots of people complain - then they wont try and pull this stunt again.
The objective is to waste their money on dealing with complaints
At some point the money they are spending on complaint handling will outstrip the cost saving they are making from the rate change - then and only then will they will get the message.

bowlhead99

Uxb wrote: »

If lots and lots of people complain - then they wont try and pull this stunt again.
The objective is to waste their money on dealing with complaints
At some point the money they are spending on complaint handling will outstrip the cost saving they are making from the rate change - then and only then will they will get the message.

As they have no shareholders it's the members that lose out when you cost them money through vexatious complaints

2010

The best complaint and the easiest is to move your money elsewhere.
All the banks /BS felt the effect the two £10k NS&I offers had.
While the government keep offering the FLS and inflation keeps falling the banks/BS will keep chopping no matter how much notice is given.

le_loup

2010 wrote: »

All the banks /BS felt the effect the two £10k NS&I offers had.
While the government keep offering the FLS and inflation keeps falling the banks/BS will keep chopping no matter how much notice is given.

At last! You understand.
Well done.

2010

le_loup wrote: »

At last! You understand.
Well done.

Are you a comedian, I`ve been saying on every thread I post on the savings boards to "vote with your feet" for years.

You come out with your meaningless one liners just to get your post count up.
Try to contribute something postitive when you post.
This isn`t the first time I`ve had to rap your knuckles about negativity.

le_loup

As you are surely aware, "voting with your feet" is not the point I highlighted. As for being negative, ahem! Look at all your posts suggesting that Nationwide are crooks and villains. Now you have explained to the uninitiated as to why they are reducing savings rates and are not as bad as you previously indicated.


So, whilst you may feel that you have rapped my knuckles, strangely, I felt no pain.

2010

le_loup wrote: »

So, whilst you may feel that you have rapped my knuckles, strangely, I felt no pain.

I could say no sense no feeling but I won`t.

le_loup

Well done for your new found restraint!