Customer loyalty - Charter Savings Bank

PaulWS1958

I have 2 ISA accounts coming to maturity with Charter Savings Bank. The maturity options offer 2.18% interest for a 1 year fixed ISA. If I go on the internet CSB are offering 2.42% interest for a 1 year fixed rate ISA. So as an existing customer for my loyalty to renew a product I am offered 11% less in interest than if I wasn't a customer. Very disappointing.

refluxer

Yes, that's pretty poor. This has happened to me in the past because the maturity options can sometimes be offered up to a month before the maturity date, then ISA rates subsequently increase but the maturity options aren't updated.

While you're deciding what to do, one thing you must do is check the default maturity options that kick in if you don't respond - most providers will default to an Easy Access / 'Maturity' Cash ISA which then gives you freedom to transfer (either internally or externally) at a later date, but some will put your money back into a current, identical product... which in your case might be that 1 year ISA @ 2.18% !

newatc

If you open a new ISA with the increased percentage then the maturity options will include that new account. Still not ideal but something.

intalex

Sorry, not hijacking but have a related question. Can banks enforce an instruction window to the point they would refuse an instruction ahead of the window? I tried to give "extract all funds out" instructions to Secure Trust and Allica (both maturing next year), and Secure Trust accepted the instruction whilst Allica said I can only provide instructions closer to maturity when their online systems will allow me to do so, hence they didn't "accept" my instruction.

masonic

intalex said:

Sorry, not hijacking but have a related question. Can banks enforce an instruction window to the point they would refuse an instruction ahead of the window? I tried to give "extract all funds out" instructions to Secure Trust and Allica (both maturing next year), and Secure Trust accepted the instruction whilst Allica said I can only provide instructions closer to maturity when their online systems will allow me to do so, hence they didn't "accept" my instruction.

What do the T&Cs say about giving notice?

intalex

masonic said:

intalex said:

Sorry, not hijacking but have a related question. Can banks enforce an instruction window to the point they would refuse an instruction ahead of the window? I tried to give "extract all funds out" instructions to Secure Trust and Allica (both maturing next year), and Secure Trust accepted the instruction whilst Allica said I can only provide instructions closer to maturity when their online systems will allow me to do so, hence they didn't "accept" my instruction.

What do the T&Cs say about giving notice?

Quite generically mention they'll be in touch 30 days before maturity to provide options to choose from, but nothing rigid in that full withdrawal notice (an obvious option) cannot be given ahead of this window. Hence why I was asking if it's ok for banks to not accept instructions ahead of such a window. Anyway, the more important thing is that the T&Cs say default maturity option (in absence of instructions) is a transfer into a holding (easy access) account, which somewhat eases up the risk of automatic reinvestment into an uncompetitive interest rate fixed account.

higueron

I am in the same position as Paulws1958 my maturity options say 2.18% but the Charter website says 1 year fixed rate isa  2.42% so I assume that if you tick the 2.18% box you will get 2.42% I tried to call them this morning but they are closed for the bank holiday

Marmaduke123

higueron said:

I am in the same position as Paulws1958 my maturity options say 2.18% but the Charter website says 1 year fixed rate isa  2.42% so I assume that if you tick the 2.18% box you will get 2.42% I tried to call them this morning but they are closed for the bank holiday

I wouldn't assume any such thing! Isn't there an option to move to any other of their accounts? If not you will have to call them or send a secure message.

newatc

newatc said:

If you open a new ISA with the increased percentage then the maturity options will include that new account. Still not ideal but something.

     This is the way to do it.

refluxer

higueron said:

I am in the same position as Paulws1958 my maturity options say 2.18% but the Charter website says 1 year fixed rate isa  2.42% so I assume that if you tick the 2.18% box you will get 2.42% I tried to call them this morning but they are closed for the bank holiday

Yes, as above - do not assume that. If you can't get in touch with them before your current ISA matures, one option is to select an Easy Access Cash ISA and then transfer from there. If you check your ISA T&Cs, you might even find that the default option (if you don't provide an instruction) is an Easy Access 'Maturity' ISA, from which you should also be free to transfer to the higher rate one year ISA. Do check your T&Cs though to be sure.

PaulWS1958

refluxer said:

higueron said:

I am in the same position as Paulws1958 my maturity options say 2.18% but the Charter website says 1 year fixed rate isa  2.42% so I assume that if you tick the 2.18% box you will get 2.42% I tried to call them this morning but they are closed for the bank holiday

Yes, as above - do not assume that. If you can't get in touch with them before your current ISA matures, one option is to select an Easy Access Cash ISA and then transfer from there. If you check your ISA T&Cs, you might even find that the default option (if you don't provide an instruction) is an Easy Access 'Maturity' ISA, from which you should also be free to transfer to the higher rate one year ISA. Do check your T&Cs though to be sure.

I tried to phone them, but sat waiting forever, so sent a message. They replied and said if I ticked the 1 year (maturity) option I would get the 2.18%. To get the higher rate, allow the ISA to default to the lower rated easy access option and then apply for a new account at the higher rate and transfer funds from the easy access ISA.