Regular Savings Accounts: The Best Currently Available List!

Velvet_Monkey

PRAISETHESUN said:

Velvet_Monkey said:

ctdctd said:

First Direct RS up to 7% - and the increase is applied to existing accounts from 1st December.

I am looking at opening one of these, but have been put off slightly by the Ts&Cs, which if I'm reading them correctly say that FD can reduce the interest rate more or less whenever they like. They'd give you notice of course, but if you decide to withdraw your cash at that point you'd forego almost all the interest earned to date, and would only get the standard savings rate since opening (currently stands at 0.65%). 
I'm wondering if these terms are really legal, and would not be deemed 'unfair'? Is it only reputational damage then that would prevent FD from getting loads of investment on this product on the promise of 7%, but in the event only pay out far less?
I've had one of these regular saver products before with no issue, but on principle don't like signing up to things which expose one to such bad practice! Thoughts anyone?

The interest rate is fixed for the duration of the product - not sure where you're reading that the rate is variable?? I've held this on a number of previous occasions and never seen them reduce the fixed interest rate, even when BoE rates have fallen.

Yes, in the traditional fixed/variable sense, the interest rate is 'fixed' (I didn't say it was variable). However, In the Ts&Cs (section 18, page 29, sorry I can't post links, but you can read them from the product page) it says they can reduce the interest rate more-or-less whenever they want. If they do that, you can either accept the rate cut, or withdraw your money. If you withdraw your money you would only get 0.65% from product opening. Now, I trust that they wont do that, but that's all it is...trust. Unless someone can tell me a regulatory reason why they couldn't?

ForumUser7

Velvet_Monkey said:

PRAISETHESUN said:

Velvet_Monkey said:

ctdctd said:

First Direct RS up to 7% - and the increase is applied to existing accounts from 1st December.

I am looking at opening one of these, but have been put off slightly by the Ts&Cs, which if I'm reading them correctly say that FD can reduce the interest rate more or less whenever they like. They'd give you notice of course, but if you decide to withdraw your cash at that point you'd forego almost all the interest earned to date, and would only get the standard savings rate since opening (currently stands at 0.65%). 
I'm wondering if these terms are really legal, and would not be deemed 'unfair'? Is it only reputational damage then that would prevent FD from getting loads of investment on this product on the promise of 7%, but in the event only pay out far less?
I've had one of these regular saver products before with no issue, but on principle don't like signing up to things which expose one to such bad practice! Thoughts anyone?

The interest rate is fixed for the duration of the product - not sure where you're reading that the rate is variable?? I've held this on a number of previous occasions and never seen them reduce the fixed interest rate, even when BoE rates have fallen.

Yes, in the traditional fixed/variable sense, the interest rate is 'fixed' (I didn't say it was variable). However, In the Ts&Cs (section 18, page 29, sorry I can't post links, but you can read them from the product page) it says they can reduce the interest rate more-or-less whenever they want. If they do that, you can either accept the rate cut, or withdraw your money. If you withdraw your money you would only get 0.65% from product opening. Now, I trust that they wont do that, but that's all it is...trust. Unless someone can tell me a regulatory reason why they couldn't?

Here is the document I believe is being referred to: https://www.firstdirect.com/content/dam/wpb/fsdt/en/documents/pdf/fdAccTandC.pdf

I can't see anything that states they can cut fixed rates, but I have only skim read it so hopefully another forumite knows the answer.

liamcov

subjecttocontract said:

Sent mine to Monmouth on 26/11.....I'm not surprised I haven't heard......in fact expected long delay.
* They are swamped with applications.
* Postal strike 30/11 & 1/12
Might hear something mid December.....if I'm lucky.

Any further news from anyone?

I sent them a secure message on Saturday but they haven't responded. What is the response if calling them - wait until they get back to you?

10_66

liamcov said:

subjecttocontract said:

Sent mine to Monmouth on 26/11.....I'm not surprised I haven't heard......in fact expected long delay.
* They are swamped with applications.
* Postal strike 30/11 & 1/12
Might hear something mid December.....if I'm lucky.

Any further news from anyone?

I sent them a secure message on Saturday but they haven't responded. What is the response if calling them - wait until they get back to you?

There is now a recorded message re the Christmas Saver, basically saying they've been inundated.

liamcov

10_66 said:

liamcov said:

subjecttocontract said:

Sent mine to Monmouth on 26/11.....I'm not surprised I haven't heard......in fact expected long delay.
* They are swamped with applications.
* Postal strike 30/11 & 1/12
Might hear something mid December.....if I'm lucky.

Any further news from anyone?

I sent them a secure message on Saturday but they haven't responded. What is the response if calling them - wait until they get back to you?

There is now a recorded message re the Christmas Saver, basically saying they've been inundated.

I hope this means future products are not all going to be branch based. Not sure why they didn't do online apps for this though to save all the extra work - they must have allowed online apps before so why go through the hassle?

AmityNeon

Velvet_Monkey said:

PRAISETHESUN said:

Velvet_Monkey said:

ctdctd said:

First Direct RS up to 7% - and the increase is applied to existing accounts from 1st December.

I am looking at opening one of these, but have been put off slightly by the Ts&Cs, which if I'm reading them correctly say that FD can reduce the interest rate more or less whenever they like. They'd give you notice of course, but if you decide to withdraw your cash at that point you'd forego almost all the interest earned to date, and would only get the standard savings rate since opening (currently stands at 0.65%).

I'm wondering if these terms are really legal, and would not be deemed 'unfair'? Is it only reputational damage then that would prevent FD from getting loads of investment on this product on the promise of 7%, but in the event only pay out far less?

I've had one of these regular saver products before with no issue, but on principle don't like signing up to things which expose one to such bad practice! Thoughts anyone?

The interest rate is fixed for the duration of the product - not sure where you're reading that the rate is variable?? I've held this on a number of previous occasions and never seen them reduce the fixed interest rate, even when BoE rates have fallen.

Yes, in the traditional fixed/variable sense, the interest rate is 'fixed' (I didn't say it was variable). However, In the Ts&Cs (section 18, page 29, sorry I can't post links, but you can read them from the product page) it says they can reduce the interest rate more-or-less whenever they want. If they do that, you can either accept the rate cut, or withdraw your money. If you withdraw your money you would only get 0.65% from product opening. Now, I trust that they wont do that, but that's all it is...trust. Unless someone can tell me a regulatory reason why they couldn't?

Trust?

If they, or any financial institution, dared to cite any umbrella clause buried in general terms and conditions as justification for reducing the rate of a fixed-rate product, whose product-specific terms and conditions specified a fixed interest rate for the duration of the product's term without exception, you could simply raise a complaint through the Financial Ombudsman Service.

Those generically vague 'catch-all' terms exist to cover their bases because they, like the rest of us, cannot predict the future, so variable interest rates can change, as well as the interest rates on new (not existing) fixed-rate accounts. Have you not encountered such clauses before in general banking terms and conditions? First Direct is hardly unique in this regard.

dcs34

Velvet_Monkey said:

PRAISETHESUN said:

Velvet_Monkey said:

ctdctd said:

First Direct RS up to 7% - and the increase is applied to existing accounts from 1st December.

I am looking at opening one of these, but have been put off slightly by the Ts&Cs, which if I'm reading them correctly say that FD can reduce the interest rate more or less whenever they like. They'd give you notice of course, but if you decide to withdraw your cash at that point you'd forego almost all the interest earned to date, and would only get the standard savings rate since opening (currently stands at 0.65%). 
I'm wondering if these terms are really legal, and would not be deemed 'unfair'? Is it only reputational damage then that would prevent FD from getting loads of investment on this product on the promise of 7%, but in the event only pay out far less?
I've had one of these regular saver products before with no issue, but on principle don't like signing up to things which expose one to such bad practice! Thoughts anyone?

The interest rate is fixed for the duration of the product - not sure where you're reading that the rate is variable?? I've held this on a number of previous occasions and never seen them reduce the fixed interest rate, even when BoE rates have fallen.

Yes, in the traditional fixed/variable sense, the interest rate is 'fixed' (I didn't say it was variable). However, In the Ts&Cs (section 18, page 29, sorry I can't post links, but you can read them from the product page) it says they can reduce the interest rate more-or-less whenever they want. If they do that, you can either accept the rate cut, or withdraw your money. If you withdraw your money you would only get 0.65% from product opening. Now, I trust that they wont do that, but that's all it is...trust. Unless someone can tell me a regulatory reason why they couldn't?

That section is for interest rate terms so is more concerned with changes in the mechanism of interest, payment dates etc. - rather than the rate. The product-specific T&Cs generally supersede their general T&Cs and in this case is clear the fixed rates are fixed for the duration of the term of the fixed interest rate. The lower rate only applies if you decide to close the account.

If for some reason (e.g. some new legislation mandating maximum interest rates of 1%) they had to cut the rate, then page 30 confirms that if you don't want to accept a change (e.g. a change in rate) you can close your account without charge. This means you would earn the expected rate of interest up to that point of closure.

Band7

liamcov said:

subjecttocontract said:

Sent mine to Monmouth on 26/11.....I'm not surprised I haven't heard......in fact expected long delay.
* They are swamped with applications.
* Postal strike 30/11 & 1/12
Might hear something mid December.....if I'm lucky.

Any further news from anyone?

I sent them a secure message on Saturday but they haven't responded. What is the response if calling them - wait until they get back to you?

My Regular Savers are both open. They cashed the cheque for one of them, and sent me my passbook. I have requested that they add this account to my online banking but they haven't done this yet. They tell me they posted the passbook for the 2nd one on Friday, so I should soon have it. Looks they lost the cheque with the opening deposit as they haven't cashed this one yet. I had applied for both accounts over three weeks ago, forms sent in the same envelope.

They have also opened my Premium Instant Saver, which I applied for online at the same time as filling in the postal applications. This was opened two weeks ago but I still can't use it as they insist on a wet signature  which is still somewhere in the Royal Mail ether.

I got through to a person on the phone this morning within 5 minutes but was left with the distinct impression that it's chaos at MonBS. She tried to tell me I can't use the Regular Savers until I had returned the signature forms for them........took several attempts from me to explain to her that my signature for those was on the respective application forms. 

I will be using the Christmas Saver as that is 5.5% but I don't think I will use the 3.75% one, or the Premium Instant Saver as I am not so impressed with them now.

Band7

liamcov said:

 Not sure why they didn't do online apps for this though to save all the extra work - they must have allowed online apps before so why go through the hassle?

MonBS need - for reasons they know best - a wet signature for each and every account you apply for. They must have my signature a dozen times by now, yet still want it again and again.

Until they completely revamp their policy on this, we'll be stuck with paper applications.

Bridlington1

My Monmouthshire Christmas Saver cheque has cleared today.The question is, will I get my passbook by Christmas. It would be rather fitting if it did.