Why has TSB lowered interest rate on 1 year fixed bond?

serpico100

I am looking to invest a lump sum in a I year fixed rate bond next month. On Martin’s site it shows TSB are paying 4.6% interest on a 1 year fixed rate bond. That is way above what is being offered by any other high street bank or building society. So I clicked the link and sure enough, the interest rate is correct. It has been like that for the last couple of days. It didn’t say anything about a time limited offer, but today the rate has been reduced to 4.00% Anybody know why? Surely it can’t be that somebody realised that they had advertised the wrong rate originally? To be fair, that rate is still the market leader among high street banks and building societies.

Descrabled

All three fixed savers (1,2, and 3 year) have reduced in interest. I took the 3 year rate last Monday at 4.88%.

I presume that too many savers had taken the fixed rates and/or competitors have been reducing their fixed rates.

LindsayT

You have to act quick. Rates are being reduced at a rate of knots at the moment. If you look now at the Martin Lewis page, you will see it is no longer there.

serpico100

That makes sense I guess. I see that their 3 year bond is now paying 4.50% so you got in just in time.

serpico100

LindsayT said:

You have to act quick. Rates are being reduced at a rate of knots at the moment. If you look now at the Martin Lewis page, you will see it is no longer there.

Yes, I have just seen that it has disappeared from the top 3. I didn’t realise that in the current climate interest rates could and would be reduced on savings accounts. 

Oasis1

It wasn't long ago you could get 5yr fixed rates of 5%+. Seems rates have peaked and are now falling. I'd get what you can.

Topiary

Descrabled said:

All three fixed savers (1,2, and 3 year) have reduced in interest. I took the 3 year rate last Monday at 4.88%.

I presume that too many savers had taken the fixed rates and/or competitors have been reducing their fixed rates.

yep good timing....the bell has rung

molerat

We opened a 2 year ISA and 1yr bond earlier in the week at 4.2% & 4.35 %, now both at 4%.

Speculator

for people who took out the bond at the higher rate, you have 10 working days to pay in up to 1 million pounds.

tightauldgit

Yeah it was annoying. I tried to open the fixed rate accounts and kept getting 'customer not verified' errors despite already having an account with them. By the time I was in a position to be able to call them about it the offer was gone so I invested elsewhere.