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M&S Bank forcing early closure of Regular Saver. Paying just 1.08% net !

rastler
Posts: 18 Forumite
Is this the latest cynical ploy by M&S Bank (HSBC) - it's criminal deception.
I've had my Regular Saver with Marks &Spencer Bank (HSBC) for 8 months and they have written to me saying they are forcibly closing it in 2 month's time and will give me interest calculated at the 'early closure rate' (1.08% net instead of the 4.8% net I should receive).
When I opened the account, I signed up for 12 months at 6% gross (4.8% net) at maturity. They are now telling me they will pay me just 1.08% net. Who in their right mind puts money into a savings account which pays 1.08% net for 10 months? I could have put the money elsewhere and achieved at least 3%?
I am not closing the account; they are.
No reasons, just the shortest and rudest letter which was left unsigned.
I phoned them (at cost to me) and I was told by the handler that he couldn't deal with it as he had never heard of such a thing. I was left hanging on the phone for 20 minutes before I was told someone would have to phone me.
Then someone else rang me and said the bank is within its rights to close my account and pay me the early closure rate. I said tell me where it says that in the bank's Terms and Conditions. She said she would have to check them. I said I already had and the bank is not within its rights.
She went away and phoned me within half hour, quoting Monthly Saver para 9.4 : “If you break any of the Banking Terms and Conditions and, as a result, we decide to close your M&S Monthly Saver account, you will receive credit interest up to the date of closure at the fixed early closure rate set out in the Price List applicable for the date on which your M&S Monthly Saver account was opened”.
I asked which of the Terms and Conditions I had broken, she answered: "I cannot divulge that information."
Of course I haven't broken any.
So there we have it, they believe they are within their rights to close our Regular Saver accounts just before they mature and pay us a paltry rate of interest. Thereby they are making more and more money out of us and we are losing more and more. Keep an eye on it please everyone as this is Deception and attempted theft (‘attempted’ because I don't intend for M&S / HSBC to get away with it).
I have just contacted the Financial Ombudsman.
I've had my Regular Saver with Marks &Spencer Bank (HSBC) for 8 months and they have written to me saying they are forcibly closing it in 2 month's time and will give me interest calculated at the 'early closure rate' (1.08% net instead of the 4.8% net I should receive).
When I opened the account, I signed up for 12 months at 6% gross (4.8% net) at maturity. They are now telling me they will pay me just 1.08% net. Who in their right mind puts money into a savings account which pays 1.08% net for 10 months? I could have put the money elsewhere and achieved at least 3%?
I am not closing the account; they are.
No reasons, just the shortest and rudest letter which was left unsigned.
I phoned them (at cost to me) and I was told by the handler that he couldn't deal with it as he had never heard of such a thing. I was left hanging on the phone for 20 minutes before I was told someone would have to phone me.
Then someone else rang me and said the bank is within its rights to close my account and pay me the early closure rate. I said tell me where it says that in the bank's Terms and Conditions. She said she would have to check them. I said I already had and the bank is not within its rights.
She went away and phoned me within half hour, quoting Monthly Saver para 9.4 : “If you break any of the Banking Terms and Conditions and, as a result, we decide to close your M&S Monthly Saver account, you will receive credit interest up to the date of closure at the fixed early closure rate set out in the Price List applicable for the date on which your M&S Monthly Saver account was opened”.
I asked which of the Terms and Conditions I had broken, she answered: "I cannot divulge that information."
Of course I haven't broken any.
So there we have it, they believe they are within their rights to close our Regular Saver accounts just before they mature and pay us a paltry rate of interest. Thereby they are making more and more money out of us and we are losing more and more. Keep an eye on it please everyone as this is Deception and attempted theft (‘attempted’ because I don't intend for M&S / HSBC to get away with it).
I have just contacted the Financial Ombudsman.
0
Comments
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Thanks for sharing this experience, and good luck with your challenge to it.
Is there any obvious reason you can think of as to why they have done this? Eg - have you moved your salary away from the account / left it virtually dormant? ( I'm not sure if either of those scenario counts as a breach of Ts and Cs though without checking though)0 -
assuming you have kept to the T&Cs you need to put in a formal complaint to M&S. You have to give them chance to fix it before escalating.0
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Who in their right mind puts money into a savings account which pays 1.08% net for 10 months?
Hope you get it sorted but not sure that's great argument when probably most people with a cash ISA are getting that or less.
As I understand it the latest account must have credit/DD etc every month to qualify, does that same requirement apply to your account?Remember the saying: if it looks too good to be true it almost certainly is.0 -
There is no requirement to pay in a certain amount into the current account each month (although I do and it then goes off to the Monthly Saver).
New accounts from April 2016 must have 2 DDs and the holder must also have switched an account into the Current Account.
I did switch to the account a couple of years ago, and if they wanted me to take out 2 DDs, I could do so easily, but they haven't asked me to (they won't divulge why I have allegedly broken their terms and conditions), they are just closing my accounts with no reason.
And, I cannot understand why anyone would want a Cash Isa (unless they are mega rich).
I could have put the money towards my Lloyds Current (which isn't maxed out).0 -
Not sure where you are getting the "New accounts from April 2016" info as clearly on their site it says you require 2 active direct debits:
M&S Monthly Saver
Exclusive access to our high rate monthly savings account
Current account customers who have switched to us using the Current Account Switch Service and have two active Direct Debits can enjoy exclusive access to our high rate savings account, the M&S Monthly Saver. With a fixed savings rate of 6% AER/gross, whether you’re saving up for something special or you have cash to tuck away each month, it’s an easy and convenient way to save a maximum of £3,000 in the coming year.0 -
When ever I've had to deal with HSBC it hasn't been a good experience, it doesn't supprise me to hear M&S is just as poor.0
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[FONT="]All changes will be effective from 6 April 2016.[/FONT]
[FONT="]From 6 April M&S current account customers will only be able to open a new[/FONT]
[FONT="]Monthly Saver Account if you meet the following criteria:[/FONT]
[FONT="]• You must hold an M&S current account and be resident in the UK.[/FONT]
[FONT="]• You have switched a current account that you held with another provider to your[/FONT]
[FONT="]M&S current account through the Current Account Switch Service; and[/FONT]
[FONT="]• You have a minimum of two active Direct Debits in place from your M&S current[/FONT]
[FONT="]account
[/FONT]0 -
I have just contacted the Financial Ombudsman.
You need to make a formal complaint to M&S first.
http://bank.marksandspencer.com/explore/help/making-a-complaint/0 -
You need to make a formal complaint to M&S first.
http://bank.marksandspencer.com/explore/help/making-a-complaint/0 -
So there we have it, they believe they are within their rights to close our Regular Saver accounts just before they mature and pay us a paltry rate of interest. Thereby they are making more and more money out of us and we are losing more and more.
What about the current account(s) - are they being closed as well?0
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