Shawbrook - does the easy access account increase automatically?

Qyburn

Ours still says Issue 33, but the change to 3.75% has been applied.

refluxer

Some banks will release a new issue at a higher rate and not increase previous issues, some will apply it to only the more recent issues and (just to throw in a curve-ball !) some banks have, in the past, increased the rate on all previous issues except the currently available one (eg. Paragon's Triple Access accounts). If you open an easy access account with an issue number, you've really got to be on the ball if you want to ensure you're always on the best rate.

Barkin

^^^ this. 

SJMALBA

refluxer said:

Some banks will release a new issue at a higher rate and not increase previous issues, some will apply it to only the more recent issues and (just to throw in a curve-ball !) some banks have, in the past, increased the rate on all previous issues except the currently available one (eg. Paragon's Triple Access accounts). If you open an easy access account with an issue number, you've really got to be on the ball if you want to ensure you're always on the best rate.

Charter and Kent, for example,  have been doing that this year.

Barkin

dunnm said:

Been with them for about 8 years. Have asked them if they automatically update, answer 'no'.

This is obviously not the case!

I've loads of messages here saying that the rate on my old issue has been automatically increased.

Barkin

refluxer said:

SevenOfNine said:

I don't get why they keep giving it new issue numbers, the T&Cs don't change.

It's because a good proportion of people won't review the rates of their accounts regularly, so a bank will save money by releasing a new issue at a higher rate (which not everyone will upgrade to) compared with increasing the rate for all account holders.

I'm not sure that's the only reason. Surely if it was they'd just do a new issue for every rate increase? 

TheBanker

Barkin said:

refluxer said:

SevenOfNine said:

I don't get why they keep giving it new issue numbers, the T&Cs don't change.

It's because a good proportion of people won't review the rates of their accounts regularly, so a bank will save money by releasing a new issue at a higher rate (which not everyone will upgrade to) compared with increasing the rate for all account holders.

I'm not sure that's the only reason. Surely if it was they'd just do a new issue for every rate increase? 

I think it was probably the reason when rates were low and changes infrequent. But now the market is much more competitive, the probably realise that unless they increase rates on their existing accounts, they'll either see big outflows or be overwhelmed with requests to transfer to the latest edition.