Sainsbury's Cash ISA

DaveB2211

Just a head's up after a conversation I had with Sainsbury's bank today.

I was checking the interest rate on my cash ISA following the recent increases but it hadn't changed from the very low level it was at.
I phoned their help desk to query why it hadn't changed and was told that I 'have to contact them to ask for the rate to be reviewed when it increases'.
This was something I've never seen before as every other account I've had always automatically adjusted rates as they changed in either direction.
If I hadn't queried it I would have still been on the same very low rate.

Maybe this is me being naïve and this is normal these days but anyone with a savings account particularly one with Sainsbury's should check what rate they're getting and that it's been increased following the recent changes.

Daliah

May be time to have your ISA transferred to another provider? I can't see Sainsburys amongst the top ISA rates.

Also worth checking whether an ISA is actually worth having https://blog.moneysavingexpert.com/2022/04/martin-lewis-ditch-cash-isa/

DaveB2211

I was checking for just that reason and this makes it certain I'll move my money to a better rated account.

Albermarle

I phoned their help desk to query why it hadn't changed and was told that I 'have to contact them to ask for the rate to be reviewed when it increases'.
This was something I've never seen before as every other account I've had always automatically adjusted rates as they changed in either direction.

AFAIK, it is not just an issue with Sainsburys bank. 

hara____

This is one thing I appreciate about Aldermore - they reliably update the rates on existing accounts.

Albermarle

hara____ said:

This is one thing I appreciate about Aldermore - they reliably update the rates on existing accounts.

As do Ford Money.

subjecttocontract

I thought there was a separate section for ISAs.

coopstar2301

I'm raising a complain the the Ombudsman about this. The fact they created a new ISA with a higher variable rate, to avoid passing on the increase is highly unethical and tantamount to a breach in the agreement where it clearly states the rates can go up due to market conditions such a BofE base rate change. Fight this! Raise an official complaint, take it to the ombudsman, get your interest rate increase backdate.

Malchester

Just ask them to increase your rate to the new one and they do it within 5 days. They are not the only ones who do this - Tesco Bank have always done it in the past and many others. Don't think they are doing anything 'wrong'.

macman

I bet it doesn't work this way when the rate drops though...they'd manage to drop it 'on your behalf'.

Albermarle

Malchester said:

Just ask them to increase your rate to the new one and they do it within 5 days. They are not the only ones who do this - Tesco Bank have always done it in the past and many others. Don't think they are doing anything 'wrong'.

Not wrong, but I presume they hope that many customers will not be that aware and just leave it in the old one.