Be careful - Charter Savings Maturity Options

Malchester

Just a 'be aware' warning. Have a fixed rate savings account with Charter maturing later this month. Just received today my maturity options from them. The interest rates they are offering for reinvestment are lower than the rates they are offering new customers. I was looking at an 18 month fix. They have offered me 1.95%. New customers can get 2.05% for the same account. Not a huge difference, I know, but it seems unfair. Their excuse was that my reinvestment rates were set before 1 August when they increased rates. That may be true but it is not beyond the wit of someone at Charter to adjust things. I know from experience that Paragon promise that if interest rates increase between the offer of a reinvestment rate and the date of reinvesting they automatically pay the higher rate. If rates fall you are guaranteed the rate originally offered.

I spoke to Charter about this but they said that there was no alternative. I have put a complaint in.

david78

You do have to be mindful and check the rates on offer.


The 2.05% currently available isn't just for new customers though. You might be able to withdraw your current savings when they mature and re-invest in this new issue. You have a 15 day window to make your deposit so you can open the new account ~11 days before the current account matures and should meet the deadline.


Only you can decide if its worth the extra work for the additional 0.1% AER.