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

BoGoF

Did those people who are now talking about crying to the Ombudsman think the 5% would last forever. At the end of the day the t and c's will state the rate is variable and they have given the appropriate notice.

Surely the Ombudsman has more important issues to be investigating.

I think I'm correct in saying that the account istill pays the highest rate of interest that doesn't have a time limit.

missile

BoGoF wrote: »

Did those people who are now talking about crying to the Ombudsman think the 5% would last forever. At the end of the day the t and c's will state the rate is variable and they have given the appropriate notice.

Surely the Ombudsman has more important issues to be investigating.

I think I'm correct in saying that the account istill pays the highest rate of interest that doesn't have a time limit.

Well said :T

swindiff

If you have £1000 in an account at 3% and £1000 in an account at 2%, that is not the same as having £2000 at 5% which is what you seem to be implying?

When you take money out of the 3% account and put it in the monthly saver at 2%, it is not earning 3% + 2% = 5%, it is just earning 2%. So you would be better off leaving it in the 3% account.

fun4everyone

wizk1 wrote: »

Also worth pointing out this promise made by none other than Paul Pester himself...

https://www.bbc.co.uk/news/av/business-43906346/tsb-boss-paul-pester-says-bank-is-on-its-knees

Listen from 5:28 onwards.

BBC Reporter: "So you're going up to 5% interest on current accounts? For how long?"

Paul Pester: "That rate doesn't change! So we're not like other banks that give you a high rate and take it away. That rate is there for good!"

That probably breaches advertising standards as it can certainly be construed Pester is advertising for the bank there. Not that an ASA ruling ever does very much except stop them doing the same thing again but TSB would receive a judgement against them if they got reported to ASA imo.

I have not received any formal notification from TSB about this interest drop yet but I will probably complain about it when I do. I mean I fully expect them to get away with it despite their promises and I don't expect any compensation but still they deserve some hassle over this. When I am asked about what I think should happen I will respond that my account should stay at 5% interest until it's closed. I have no doubt however that that will not be the outcome :rotfl:. Still, it's not a trivial waste of time to complain, consumers should hold firms to account that blatantly lie to their customers in order to get business, which TSB have done here.

colsten

aj23 wrote: »

You can quibble over wording, but the basics of what I have just said doesn't change and is still right.

If I were you, I would stop digging.

You have already proven that you have a profound misunderstanding by suggesting there'd be one way to maintain 5% with TSB.

aj23 wrote: »

One way to maintain 5% with TSB is to open the linked 2% Monthly Saver, so you'd nearly make up the difference give or take a few pounds, over 12 months.

It's been pointed out by various people that you are wrong and why. Verbally attacking those people only makes you disappear completely in the hole you dug for yourself. Regulars on this forum know whose posts on financial matters they can rely on, and I am afraid to say, it isn't yours.

Nicholas

This is annoying but on reflection I can't moan that much because I don't really use the account. Just pay in £500 and take out £500 every month and maintain a balance of £1,500. Just the bare minimum to get the interest paid.

myth123

A tad annoying but it seems like the current account interest game is well and truly slowing down.

Still decent for me, 3% on 2 x £1500, no effort needed and the only reason it went back up to 5% last year was because of their IT meltdown. Even if you only have 1 account with £1500, at 3% for easy access, it's as good as there is out there.

I might consider switching if/when they reduce further down from 3%.

callum9999

RedRuby wrote: »

That was quick. I thought they wouldn't drop the interest as a way of rewarding all the loyal customers who didn't close their account after their IT debacle.

Andy why then introduction that refer a friend bonus but cut interest rates. its unlikely I would refer a friend after they do this and their past IT problems.

If you're unlikely to refer a friend, offering you a payment to do so makes perfect sense...

badger09

On the infinitesimally small chance that all the various complaints about the rate reduction are upheld:cool:, TSB could simply reduce the amount on which they pay 5% 'for good' to say £100. Simples:p

(I haven't listened to the broadcast but assume no balance was mentioned)

callum9999

BoGoF wrote: »

Did those people who are now talking about crying to the Ombudsman think the 5% would last forever. At the end of the day the t and c's will state the rate is variable and they have given the appropriate notice.

Surely the Ombudsman has more important issues to be investigating.

I think I'm correct in saying that the account istill pays the highest rate of interest that doesn't have a time limit.

So to summarize, you're a pushover and think it's fine for major banks to outright lie to generate more business? Interesting.