The Top Easy Access Savings Discussion Area

OceanSound

RG2015 said:

OceanSound said:

RG2015 said:

RG2015 said:

Band7 said:

Ford seem a bit confused about Gross and AER. They were meant to say their new rate is 3.27% gross and 3.32% AER

Now I may be wrong but I thought the term gross was meant to distinguish from net, meaning gross payment or payment net of income tax.

The term gross appears to have acquired a different meaning now.

In my opinion, Ford Money’s 3.32% AER can be referred to as 3.32% gross annual. This is how Section62 referred to it in their post.

That said, Ford Money’s email may be correct if the recipient had opted for annual interest.

If not, then it is clearly incorrect by not specifying AER or monthly/annual rate.

I haven’t received today’s email but my emails in the past have used the term gross and quoted the monthly rate, which is the option on my account.

I therefore would expect my email today to quote my new rate as 3.27% gross, not 3.32% gross.

Nevertheless, Ford Money could have avoided this confusion by stating the rates for AER annual and gross monthly in their email.

This kinda of error, be it accidental or deliberate, must be reported to the bank or Fintech immediately on noticing, so they can rectify it.

Many customers may be affected - not only you!

But it is not an error.

I now have my email and it says my rate is increasing to 3.27% gross.

I have chosen monthly interest and it is now showing for me within my online banking account as 3.27% gross.

Hence everything is fine for me as it is for Section62 at 3.32% as they have chosen annual interest. 

This bit:

...but my emails in the past have used the term gross and quoted the monthly rate, which is the option on my account.

Are you now telling us the above was not an error? 

phillw

jaypers said:
Their loss as everyone with a modicum of common sense would move all their money out when this happens.

Presumably they will keep an eye on how quickly people are moving and will adjust the rates to retain money at a rate they are comfortable with, as they have previously done.

RG2015

OceanSound said:

RG2015 said:

OceanSound said:

RG2015 said:

RG2015 said:

Band7 said:

Ford seem a bit confused about Gross and AER. They were meant to say their new rate is 3.27% gross and 3.32% AER

Now I may be wrong but I thought the term gross was meant to distinguish from net, meaning gross payment or payment net of income tax.

The term gross appears to have acquired a different meaning now.

In my opinion, Ford Money’s 3.32% AER can be referred to as 3.32% gross annual. This is how Section62 referred to it in their post.

That said, Ford Money’s email may be correct if the recipient had opted for annual interest.

If not, then it is clearly incorrect by not specifying AER or monthly/annual rate.

I haven’t received today’s email but my emails in the past have used the term gross and quoted the monthly rate, which is the option on my account.

I therefore would expect my email today to quote my new rate as 3.27% gross, not 3.32% gross.

Nevertheless, Ford Money could have avoided this confusion by stating the rates for AER annual and gross monthly in their email.

This kinda of error, be it accidental or deliberate, must be reported to the bank or Fintech immediately on noticing, so they can rectify it.

Many customers may be affected - not only you!

But it is not an error.

I now have my email and it says my rate is increasing to 3.27% gross.

I have chosen monthly interest and it is now showing for me within my online banking account as 3.27% gross.

Hence everything is fine for me as it is for Section62 at 3.32% as they have chosen annual interest. 

This bit:

...but my emails in the past have used the term gross and quoted the monthly rate, which is the option on my account.

Are you now telling us the above was not an error? 

• Correct. I am telling you the above is not an error.
• Gross Monthly is different from Gross Annual.
• Gross only means it has not had any deductions such as tax or any other charges
• Gross Annual is equivalent to AER (annual equivalent rate)

There is a recent trend where interest rates are quoted either AER or gross. I would acknowledge that this can be misleading.

But as I say above, if I am quoted a gross rate which is the correct rate, this cannot be an error.

janusdesign

I just received an email stating that Newcastle BS NCL Triple Access Saver (Issue 4) is increasing it's annual rate from 3.05% to 3.25% on Monday 24th April... whilst Issue 4 is NLA (No Longer Available), there is an Issue 5 available currently paying 3.10% - I don't know if that rate is increasing next Monday as I can't see anything about this recent rate change on their site.

ForumUser7

@janusdesign said:

I just received an email stating that Newcastle BS NCL Triple Access Saver (Issue 4) is increasing it's annual rate from 3.05% to 3.25% on Monday 24th April... whilst Issue 4 is NLA (No Longer Available), there is an Issue 5 available currently paying 3.10% - I don't know if that rate is increasing next Monday as I can't see anything about this recent rate change on their site.

It will likely show here (https://www.newcastle.co.uk/savings/manage-your-savings-account/interest-rates) from Monday 24th. Usually they release an article on their newsroom before hand (https://www.newcastle.co.uk/news) but I've been unable to locate anything regarding this as yet.

Dietofsoup

janusdesign said:

I just received an email stating that Newcastle BS NCL Triple Access Saver (Issue 4) is increasing it's annual rate from 3.05% to 3.25% on Monday 24th April... whilst Issue 4 is NLA (No Longer Available), there is an Issue 5 available currently paying 3.10% - I don't know if that rate is increasing next Monday as I can't see anything about this recent rate change on their site.

Issue 3 is still at 2.5%.

Fingers crossed 

RG2015

refluxer said:

Ford Money have been quoting incorrect gross/AER info for the monthly interest option on their accounts for years which is strange, because it's actually to their detriment.

For example - the monthly interest option for their Flexible Saver is quoted as '3.27% Gross p.a. / AER' when it should be '3.27% Gross p.a. / 3.32% AER'.

I have a Flexible Saver with monthly interest and their rate-change emails for this account, however, simply state the new gross rate of 3.27% (and don't mention AER), which is correct. MoneyFacts display the correct AER for the monthly option as 3.32%.

I had originally thought this was simply a leftover effect of the <1% interest rates of a few years ago where gross and AER were identical but the fact this is still happening a few years later suggests this hasn't been a simple 'copy and paste' error from re-using old T&Cs documents ! 

@OceanSound

This is the example that demonstrates your earlier point rather than the emails.

There is no disputing that this is an error by Ford Money.

GalacticaActual

Wheres_My_Cashback said:

GalacticaActual said:

HSBC are increasing the interest rates on some of their savings accounts on Thursday 20th April 2023.

In particular the Online Bonus Saver is increasing by 0.25% to 3.5% on the first £10,000.

https://www.msn.com/en-gb/money/other/hsbc-reintroduces-200-switch-offer-and-increases-interest-rates-on-savings-accounts/ar-AA19XLpE?ocid=msedgntp&cvid=5ff01fdce4094feb8cd07182eb202822&ei=7

Remember the rate is only applicable if you do not make a withdrawal so only withdraw on the 1st and remove all funds/close otherwise you'll get a much lower rate.

Thanks for the additional information.

It would appear the interest rate, when you make a withdrawal in the month, will be 1.3% and the rate for any savings above £10,000 will be 2% from 20th April 2023 (up from 1.75%).

Information from the Daily Mail website:

Most notably, on Thursday 20 April it is upping the rate on its Online Bonus Saver instant access account from 3.25 per cent to 3.5 per cent on balances up to £10,000.
However, one drawback is that for any cash held over the £10,000 cap, the rate will drop to 2 per cent.
The other drawback is that the 3.5 per cent rate only applies for any month in which no withdrawals are made. 
During a month in which a withdrawal is made or the account is closed, savers will only earn 1.3 per cent.

mebu60

GalacticaActual said:

HSBC are increasing the interest rates on some of their savings accounts on Thursday 20th April 2023.

In particular the Online Bonus Saver is increasing by 0.25% to 3.5% on the first £10,000.

https://www.msn.com/en-gb/money/other/hsbc-reintroduces-200-switch-offer-and-increases-interest-rates-on-savings-accounts/ar-AA19XLpE?ocid=msedgntp&cvid=5ff01fdce4094feb8cd07182eb202822&ei=7

Thank you, not yet received my notification but is timely as was diaried for closure on 2 May.

Rollinghome

@RG2015 said:
There is no disputing that this is an error by Ford Money.

Incredible that some banks don't appear to understand the meaning of basic terms such as AER, which are intended to be simple enough for the average saver. And Ford Money isn't the only one.

The shambles that is Renault's RCI Bank still show the gross monthly applied rate for each of the fixed rate accounts I hold with them as "AER Gross".  Is it something to do with making cars?