Charter savings renewal trap

Mez21

My wife just rolled over some savings with the above assuming the rate offered was a loyalty rate,
. She checked their website after and foun the rate for new money is 0.1% higher.

A call to them said there was nothing they could/would do to match it so we plan
To cancel the rollover, let the money move to an instant access account (no other option apparently) then take the money out and put elsewhere.

Posted as a heads up for others, not the right way to treat customers in our view so will likely take all the money out when it's free to move.

eskbanker

It's hardly a trap, just naivety to assume that a renewal would be a rate better than that available to new customers, unless this was actually specified somewhere.

I do understand the line of argument that loyal customers should be rewarded but it's not unusual in financial services for better deals to be available only to new customers, such as all the current account switching incentives for example. Insurance renewals are often pitched higher than new customer prices too - this doesn't make it 'right' but caveat emptor does need to apply....

Mez21

Was only sharing the info, all of the other savings providers we use, and there a lot, offer a rate better than for new customers for renewals, first direct are very good for this as an example. The point I was making was that others need to be aware with this particular provider when renewing.