Birmingham Midshires Internet Easy Access (Issue 1)

WaltD

I have received a letter from Birmingham Midshires this morning, informing me that the AER on their Internet Easy Access (Issue 1) savings account has been reduced from 5.40 to 5.10 percent with effect from 12 May 2005. (Both rates include a first year bonus of 0.50% gross).

Anon

I have received the same letter this morning - as I took out the account in September for the rate of 5.40% (including the 12 month bonus of 0.5%) - does this mean that the account will revert to the new rate at the September anniversary or now? If now, isn't this breaching the terms of the deal as I understood that it was fixed for a year?

They have (according to the letter) "resisted market pressure to change our rates for as long as possible but now have to bring our general range in line with the rest of the savings market." What pressure would that be when Bank of England interest rates have not changed?

Anon

glosman555

I got the same letter this morning; looking at MSE savings page I noticed that the AA are offering 5.31%gross but in the small print the money is deposited with Birmingham Midshires. I would think the AA are getting a commission from BM so there statement "resisting market pressure" doe's not stand up.

RubyBish

I received the same letter today (18th).
I know that the rate can change at any time and it highlights the mockery of the 'bonus rate' marketing gimmick, but is anybody else dissapointed that they have changed the rate a week ago without getting their correspondance out in time?

The only market pressures they must be facing is an incometent investment and management as we all know how stable the Bank of England rate has been.

I certianly wont consider using them again even if they ever offer a great rate again if they send out undated letters about past events which affect my investments.

derrick

I received the same letter yesterday and have just spoke to them on the phone, they say the rate is a variable one and that they have reduced the rate because they think the BoE rate is going to go down! what a load of tosh,they also trotted out that they have 30 days by law in which to notify people of rate changes, I have also had a go at them as to why they did not put a valid date on the letter instead of just the month, didn`t receive a satisfactory answer.
I will be moving my money to a better rate ,if I can find one, if anyone else wants to make verbal comments to them, their freephone number is, 0800 0329127, if nothing else we can rack their phone bill up

Their chaps transfer fee is £25. which I have been told you can use to transfer to any account,not just your nominated online account, if not using chaps to another account you will have to use your nominated online account to transfer or close.

ManAtHome

Looks like they join the baddies club (motto: when rates go down so do ours, when rates go up ours go down). I'd like to nominate Northern Rock, Nottingham B/s and Scarborough B/s...

Incidentally, aren't Midshires part of the Halifax - are we due for a 'market-leading mortgage' deal..?

Anon

I am annoyed - I had earlier this week transferred out my savings from Egg at the end of the 6 month promotion to these guys as I worked out the difference in rate for 4 months was worth it. The day this was confirmed and no going back, they slash the rate.

I am now quickly deciding where to go - some ideas as:
http://www.moneyfacts.co.uk/savings/charts/savings_internet.htm

Northern Rock or Alliance & Leicester - does anyone have any thoughts?

Many thanks

Anon

Chippy_Minton

Anon wrote:

Northern Rock or Alliance & Leicester - does anyone have any thoughts?

See Martin's article

WaltD

I think they are very naughty. I had only been invested with them since last October. Anyway, I have opened a new Alliance & Leicester Online Saver account at 5.35% gross AER and moved my money there, except for a small residual amount to keep the Birmingham Midshires account open. I lost about a week's interest whilst the money was "between banks" but it cost nothing to transfer it via my own current account. The maximum you can invest in the A & L Online Saver is £25,000. It's a "variable" rate too, so they may reduce it eventually ... but hey, it's better at least for the moment.

Chippy_Minton

WaltD wrote:

I think they are very naughty. I had only been invested with them since last October. Anyway, I have opened a new Alliance & Leicester Online Saver account at 5.35% gross AER and moved my money there, except for a small residual amount to keep the Birmingham Midshires account open.

There are advantages and disadvantages in keeping the BM a/c open with a small balance.

The disadvantage is that if the interest is paid yearly - and I don't think the monthly option is available on this account - BM have the interest you've earned and you won't benefit from it until the year end or you close the account. That uncredited interest could be capital earning interest in another account.

The advantage is that you retain a BM a/c so it's easier and quicker to open another account because, as an existing customer, they don't require your identity documents.

RubyBish

But why would you consider using them again?
I think a good return of investment should be balanced with using a company that you can trust.

Close your accounts and be done with them.