RCI Interest Rate Incorrect

Rheumatoid

Opened a 2yr fix on 12/11 @ 4.85%
Just funded it within the 14 day window and rate in my account showing as 4.75%
I presume the following in their account info downloaded on application means I should be eligible for 4.85% - even if they change their rate in the meantime? I have written to them but not expecting a response in a hurry!

soulsaver

Rheumatoid said:

Opened a 2yr fix on 12/11 @ 4.85%
Just funded it within the 14 day window and rate in my account showing as 4.75%
I presume the following in their account info downloaded on application means I should be eligible for 4.85% - even if they change their rate in the meantime? I have written to them but not expecting a response in a hurry!

4.75% is the paid montthly rate = 4.85% aer

refluxer

Did you select monthly interest ? If so, then the stated gross rate of 4.75% is correct and you will achieve an AER of 4.85% provided you have the interest paid into the same account, due to compounding.

Rheumatoid

Thanks both,

forgot I had selected that option and should have realised 

Rollinghome

If you login and look at the Account Details page, they are wrongly showing the AER for monthly 2 year interest as being 4.75%, instead of 4.85%. 

I emailed and messaged them for clarification 2 weeks ago, but still haven't had a reply.  They're doing similar with the 1 year account - showing what should be the monthly applied rate of 4.51% as the AER instead of 4.60%.

Rheumatoid

Rollinghome said:

If you login and look at the Account Details page, they are wrongly showing the AER for monthly 2 year interest as being 4.75%, instead of 4.85%. 

I emailed and messaged them for clarification 2 weeks ago, but still haven't had a reply.  They're doing similar with the 1 year account - showing what should be the monthly applied rate of 4.51% as the AER instead of 4.60%.

Mine is the same. I wait to hear. Let me know if you hear anything. Thanks.

Rollinghome

Interesting boilerplate answer to mass of complaints on Trustpilot about being ignored from RCI Head of Savings, Tafari Smith:

I’m very sorry if you had a long wait time on the telephone or not being able to connect. We’ve kept some very competitively priced accounts on sale for the past two weeks up to this morning. At a time when household finances are stretched, I asked the team to give some priority to opening accounts at these rewarding rates (rather than taking the products off sale) so customers would earn a competitive return on their savings for years to come. I’m sorry this impacted your experience with us.

So he seems to be saying that they decided not to bother answering phones or sending replies in order to concentrate on bringing in more money.  A decision apparently driven by pure altruism towards those with stretched household finances.  Perhaps the same reason they state the interest rate wrongly.

Whether the rates offered will turn out to be a "competitive return for years to come" has yet to be seen. (The man should be a politician.)

Rheumatoid

Have just written to them again with 'COMPLAINT' as the subject line. Let's see if they take any notice!

Rollinghome

Seems wacky PR to just decide to ignore dealing with customers' problems and just concentrate on opening new accounts.  Could be the same again in 12 months, when all those accounts mature. Will need a very special offer to keep some irritated customers.

Rheumatoid

Well the word 'complaint' in the subject seems to have had an effect. Just had a call from RCI. He tried to explain that the interest rate is showing as 4.75 because I have opted for monthly interest. I told him that the AER advertised was 4.85 and that 4.75 AER is displaying in my account so I felt there was an issue with this. He assured me we would be paid 4.85 AER and he would look into any incorrect display of rate inside customer accounts. Maybe give them a month and then follow up.

subjecttocontract

Nope......total mystery.
I've read all the posts in this thread and still have no idea who RCI are ?
Could someone help ?