Notice Accounts

premierfella

1spiral said:

premierfella said:

1spiral said:

slinger2 said:

1spiral said:

I do find it somewhat odd that they can actually change the rate whilst you're locked in. It's tantamount to a fixed rate bond provider deciding part way through the term that they want to lower the rate and not give you a means to get out.

It is odd, which is why personally I'm not too concerned about it.

We'll know for sure in a couple of month's time when the base rate likely moves, but I would be very surprised if they don't in practice actually do what others do and either give the full notice period before applying the new rate, or allow a no-notice withdrawal or closure within the 30 day period.

Worst case I see (irrespective of what they've written in their terms) is they apply a maximum interest rate reduction equivalent to the reduction in base rate. If they did more than that without allowing a free out or giving the full notice period before applying the reduction they'd likely be falling foul of the treating customers fairly principles which override unfair terms.

I think you're probably right. The T&Cs does state "at least" which implies they could (and probably will) give longer. The only trouble is that its not a risk I'm willing to take with rates on the way down. When I spoke to CS yesterday I even added to them that it was odd and that the T&Cs could tie me to an unfavourable rate to which they just agreed but didn't add words such as I know it says that but in practice we do this. They just quoted the "at least 30 days".

Happy to admit when I'm wrong. Given FirstSave seems happy with this sharp practice, there is definitely no reason why Vanquis wouldn't do it. I only had a nominal amount in FirstSave, but the small sum I have in Vanquis is now going to get at least notice given to withdraw to close.

Bridlington1

Vanquis 90 day notice account issue 5 has now been launched at 5.35% (£1k min).

1spiral

Bridlington1 said:

Vanquis 90 day notice account issue 5 has now been launched at 5.35% (£1k min).

Just be aware that their T&Cs only commit to giving you at least 30 days notice of a change in rate so you could be locked in for 2 months at an unfavourable rate.

refluxer

1spiral said:

Bridlington1 said:

Vanquis 90 day notice account issue 5 has now been launched at 5.35% (£1k min).

Just be aware that their T&Cs only commit to giving you at least 30 days notice of a change in rate so you could be locked in for 2 months at an unfavourable rate.

As discussed previously, when the notice period of an interest rate change is less than the notice you give for withdrawals, you normally have the option to close your account before the date of the rate change without penalty and without having to serve your notice. This is the case with Vanquis, judging by their notice account T&Cs.

I closed a Melton notice account in this way (without giving notice and before a rate drop took effect), a few years ago.

1spiral

refluxer said:

1spiral said:

Bridlington1 said:

Vanquis 90 day notice account issue 5 has now been launched at 5.35% (£1k min).

Just be aware that their T&Cs only commit to giving you at least 30 days notice of a change in rate so you could be locked in for 2 months at an unfavourable rate.

As discussed previously, when the notice period of an interest rate change is less than the notice you give for withdrawals, you normally have the option to close your account before the date of the rate change without penalty and without having to serve your notice. This is the case with Vanquis, judging by their notice account T&Cs.

I closed a Melton notice account in this way (without giving notice and before a rate drop took effect), a few years ago.

You may be right but the actual terms I think you are alluding to are:

"If we make a change to this agreement (except interest rate changes), we’ll give you at least two months’ written notice. However, if the change is to your benefit, we’ll make the change immediately and tell you about it afterwards.
Your options if you’re not happy with a change we’re making
If you’re unhappy with a change we’re making, you can tell us but you may need to close your account. You must
tell us before the change comes into force."

You could interpret the terms your way but I interpret it as not applicable to interest rate changes.

My reason is the above quote (from a section titled "changing other terms") comes after the specific terms relating to interest rate changes where it mentions the 30 days but fails to mention closing your account as an option.

As I mentioned a few posts back, I actually called them to clarify this and was quoted the "at least 30 days". When I explained that this could leave me stranded with an unfavourable rate for 2 months, I wasn't told that I would have an option to close it (although to be fair, I didn't actually ask that question specifically). I just ended the call as I deemed the account unsuitable. I would be interested to know if anyone has managed to close an account due to a fall in rates but if that was the case, it would've been a few years ago now.

janusdesign

email from Zopa about Smart Saver changes from 26th August (already posted in the EA thread, but occurred to me that the last change affects notice accounts)...

• New pot types
  We’re adding the ability to introduce exclusive pot types to your Smart Savings Hub, which will require you to meet certain criteria in order to access them.
  
  
• Adding funds during a notice period
  We’re making it clear that once you’ve given notice to access funds in a Boosted pot, you won’t be able to add any more money to this pot.

allegro120

janusdesign said:

email from Zopa about Smart Saver changes from 26th August (already posted in the EA thread, but occurred to me that the last change affects notice accounts)...

• Adding funds during a notice period
  We’re making it clear that once you’ve given notice to access funds in a Boosted pot, you won’t be able to add any more money to this pot.

IIRC they have closed this loophole long time ago, but never announced this change until now. I remember taking advantage of it for a while and then suddenly the system stopped allowing transfers to pots with given notices.

nottsphil

1spiral said:

refluxer said:

1spiral said:

Bridlington1 said:

Vanquis 90 day notice account issue 5 has now been launched at 5.35% (£1k min).

Just be aware that their T&Cs only commit to giving you at least 30 days notice of a change in rate so you could be locked in for 2 months at an unfavourable rate.

As discussed previously, when the notice period of an interest rate change is less than the notice you give for withdrawals, you normally have the option to close your account before the date of the rate change without penalty and without having to serve your notice. This is the case with Vanquis, judging by their notice account T&Cs.

I closed a Melton notice account in this way (without giving notice and before a rate drop took effect), a few years ago.

You may be right but the actual terms I think you are alluding to are:

"If we make a change to this agreement (except interest rate changes), we’ll give you at least two months’ written notice. 

I was considering this account thinking I could close it immediately without penalty if the interest rate dropped. That's because I thought the two months notice not applying to interest rates changing was purely because those would be notified without hesitation, but now it's so ambiguous it's put me right off.

Rheumatoid

Oxbury notice Accounts down.

120 Day (that I have given notice on already):

On 24 April 2024, we wrote to you informing you that from 6 September 2024, your account's interest rate on balances above £ 1,000 will change from 5.39% Monthly Gross / 5.53% AER to 4.89% Monthly Gross / 5.00% AER.

We are writing to inform you that on 13 November 2024 your account's interest rate on balances above £ 1,000 will change again to 4.65% Monthly Gross / 4.75% AER. This further decrease in rate is in response to expected future market conditions and when it takes effect, we believe your account will continue to offer a competitive rate and great overall value.

90 Day - need to work out when to give notice (? 16/7)  :

We are writing to let you know that from 14 October 2024, your account's interest rate on balances above £ 1,000 will change from 5.14% Monthly Gross / 5.26% AER to 4.89% Monthly Gross / 5.00% AER.

allegro120

Rheumatoid said:

Oxbury notice Accounts down.

120 Day (that I have given notice on already):

On 24 April 2024, we wrote to you informing you that from 6 September 2024, your account's interest rate on balances above £ 1,000 will change from 5.39% Monthly Gross / 5.53% AER to 4.89% Monthly Gross / 5.00% AER.

We are writing to inform you that on 13 November 2024 your account's interest rate on balances above £ 1,000 will change again to 4.65% Monthly Gross / 4.75% AER. This further decrease in rate is in response to expected future market conditions and when it takes effect, we believe your account will continue to offer a competitive rate and great overall value.

90 Day - need to work out when to give notice (? 16/7)  :

We are writing to let you know that from 14 October 2024, your account's interest rate on balances above £ 1,000 will change from 5.14% Monthly Gross / 5.26% AER to 4.89% Monthly Gross / 5.00% AER.

I also worked out 16th July for 90d for the closure notice.