Sainsburys Bank Interest Rates

dataylor

I am running Cash ISA and ESaver Special accounts under power of attorney for my father. I noticed recently that new accounts get around 0.22% more interest than existing accounts. I enquired about automatic increases with Sainsburys Bank but they tell me that they only notify customers about reductions in interest rates, furthermore they do automatically reduce the rate when applicable but will not automatically increase them.

Consequently when you do see a rate rise, you have to contact the bank to get your Cash ISA rate increased. Unfortunately to get an increase on your eSaver Special account, you have to open a new account and transfer it; every time!

This seems to be a very sharp practice for a bank and is unethical in my opinion. What do others think?

ewaste

Banks are businesses, why would they voluntarily automatically give away money?

GeeJay

Why should they increase the rate - because they have different accounts with identical names offering different rates of interest. That suggests sharp practice to me. At the worst they should have different version numbers if they want to keep the name the same.

vouch0r

If you were really that bothered you would move your money, 1. 06 for the cash isa is frankly pointless and much better out there.

ewaste

vouch0r wrote: »

If you were really that bothered you would move your money...

Consumer behaviour is exactly why businesses, Banks in this case, behave the way they do.

Alexland

Not unique to Sainsbury's bank launching new versions of a product to attract new deposits letting existing versions rot. That's why the customer needs to keep abreast of the market to maintain the best deals.

Malchester

Yes, not unique to Sainsburys, Tesco Bank have done the same to me 4 times recently, twice within two weeks. The only was is to open another account.

chucknorris

dataylor wrote: »

I am running Cash ISA and ESaver Special accounts under power of attorney for my father. I noticed recently that new accounts get around 0.22% more interest than existing accounts. I enquired about automatic increases with Sainsburys Bank but they tell me that they only notify customers about reductions in interest rates, furthermore they do automatically reduce the rate when applicable but will not automatically increase them.

Consequently when you do see a rate rise, you have to contact the bank to get your Cash ISA rate increased. Unfortunately to get an increase on your eSaver Special account, you have to open a new account and transfer it; every time!

This seems to be a very sharp practice for a bank and is unethical in my opinion. What do others think?

Thanks, I didn't realise that, I have a significant amount in their eSaver Special savings account earning 1.05%, but I see that they are currently advertising it at 1.17%, I'll contact them to see if I can obtain the extra interest.

My wife has much more than I do with them too.

EDIT: We've both switched to the higher interest now.

samal

Hi chucknorris

Did you do this online or over the phone please?

ColdIron

Malchester wrote: »

Yes, not unique to Sainsburys, Tesco Bank have done the same to me 4 times recently, twice within two weeks. The only was is to open another account.

You'll need to do it again, they're now offering 1.20%

Malchester

Yes thanks, just checked and have opened a new account and sent them a snotty message on Facebook!!!