MSE News: Yorkshire Building Society axes high-interest regular savings accounts

Ashen

Bitteswell wrote: »

Spot on. The Society is encouraging savers to carry on paying their monthly deposit into the account that pays 1.5% when they offer a Regular Saver account that pays more. This is detrimental to the saver and the Society gains. The Society refuses to engage with me on this topic, and its Final Response is about closing the accounts, which it has every right to do, so the Financial Ombudsman is now ruling on it. Given the Leeds failed in this respect too, and was held to account, I am sure the Yorkshire will be held to account too. Treating customers fairly is not optional. It is required. On £500 a month for 2 years, the 0.25% difference in interest amounts to £15. If the average loss was say, £7.50 per customer, it amounts to £495,000 in favour of the Society for the 66,000 customers whose accounts are being closed. No small amount.

I've had letters from banks telling me my ISA rate has dropped to 0.05% and giving me no indications of other rates, yet you think Yorkshire should give you perfect advice (at least, your view of what advice they should give you is), even though every customers situation is different? Oh, and £7.50 per customer is a small amount. Stop talking nonsense and stop wasting the Financial Ombudsmans' time.

Bitteswell

So if your fixed rate mortgage came to an end and they told you that the best deal they could offer you was 2% and you then discovered they had another deal for 1.75%, you would not mind at all?

Only a banker could think that was a fair way to treat customers.

dale_cotterill

Bitteswell wrote: »

So if your fixed rate mortgage came to an end and they told you that the best deal they could offer you was 2% and you then discovered they had another deal for 1.75%, you would not mind at all?

Only a banker could think that was a fair way to treat customers.

But the 1.75% Regular Saver product doesn't allow you to deposit the £20,000 which has come from your previous Regular Saver into it, so it isn't a comparable product as you can't put all your money in it.

Once you adjust the rate for deposits of £500 a month, the 1.50% product is far better value.