TSB to cut interest rate on its current account to 3% - MSE News

wizk1

Just dug up an email I received from TSB on May 2nd 2018. I'll just leave this extract here....

For Classic Plus customers, as well as waiving overdraft fees and interest charges incurred in March and April, to show how grateful we are for your loyalty and patience, we are also increasing the interest rate on our Classic Plus account from 3% to 5%. We promise this won’t be taken away after a year.

fiestaman87

I opened one of these about 2 months ago.

It's a shame its dropping the rate from 5% to 3% but it still beats most accounts (except the 5% Nationwide FlexDirect - which is only for a year anyway) including fixed rate bonds.

I'll see what the market does with current accounts in July before deciding whether to leave my £1.5k there or move it elsewhere.

fiestaman87

wizk1 wrote: »

Just dug up an email I received from TSB on May 2nd 2018. I'll just leave this extract here....

For Classic Plus customers, as well as waiving overdraft fees and interest charges incurred in March and April, to show how grateful we are for your loyalty and patience, we are also increasing the interest rate on our Classic Plus account from 3% to 5%. We promise this won’t be taken away after a year.

They've stuck to their word and a bit more - 14 months.

wizk1

fiestaman87 wrote: »

They've stuck to their word and a bit more - 14 months.

"We promise this won’t be taken away after a year." is badly worded and can be interpreted several ways. One could argue even if it was taken away 10 years from now, the "promise" is still broken.

colsten

wizk1 wrote: »

"We promise this won’t be taken away after a year." is badly worded and can be interpreted several ways. One could argue even if it was taken away 10 years from now, the "promise" is still broken.

Sorry, I am being a bit dense here, how would you argue that?

baldric300

Extract from e-mail sent by TSB last year on 2nd May...
"we are also increasing the interest rate on our Classic Plus account from 3% to 5%. We promise this won’t be taken away after a year."
Well, maybe 14 months isn't a year but it certainly isn't within the spirit of that e-mail.

Ed-1

colsten wrote: »

Sorry, I am being a bit dense here, how would you argue that?

"After a year" is any time after 2nd May 2019. They promised not to take it away after a year.

So on that interpretation they could have taken it away before 2nd May 2019 and not broke the promise!

fun4everyone

We promise this won’t be taken away after a year.

Well it will be after a year soon, and they are going to take it away then so imo that is breaking the promise.

!!!!!!. Hopefully this will add to their complaint backlog :rotfl:

eskbanker

The ambiguity of the wording was a hot topic as soon as it was announced on 2 May 2018:

prixon wrote: »

the "promise" is certainly very ambiguous.

Technically, if the interest rate is lowered at any time after a year is up, for the rest of eternity, then the promise will have been broken.

However, it could be lowered within (say) 6 months and that would be OK, because it's not after a year!

P

and the removal of the rate shortly after a year was also predicted in that same thread:

huw01 wrote: »

Just had an email from TSB and one paragraph says

!!!8220;For Classic Plus customers, as well as waiving overdraft fees and interest charges incurred in March and April, to show how grateful we are for your loyalty and patience, we are also increasing the interest rate on our Classic Plus account from 3% to 5%. We promise this won!!!8217;t be taken away after a year!!!8221;

So that will be around the 13 month mark we get the 5% for - call me sceptical

karlie88

I hope they don't send letters out for each current account. :eek: