Sainsbury's Bank frustrations

pajada

So, last week, with Sainsbury's Bank offering one of the better savings interest rates around (highlighted on MSE), I opened a Defined Access account. This week, I saw on MSE that the rate had increased from 3.76% to 4.01%. Great, I thought. Until I checked online. My account was still paying the old rate. So, after just 8 days, I've had to open a new account and request the closure of the 'old' one to get the higher rate. I know this has been the practice of many banks for a long time. But it's still deeply frustrating! Other accounts, including RCI, Marcus etc automatically offer higher rates to their existing customers. That, in my book at least, is how you win loyalty. 

BreakingGlass

Welcome to the world of a Sainsburys saver!

I have carried out the open/closure process five times since 24 April, on two accounts (self and wife) each time.  It becomes second nature.

You also get both a closing statement and a new welcome pack and booklet through the post each time - keeps the postman busy and is one of the few mail items I receive.

EDIT:  I forgot to add - you also get interest added on each closure so you may need to adjust annual interest tax planning accordingly!

subjecttocontract

In my experience it's best to treat all financial organisations with contempt......hope for the best & expect the worst. They are in business to make a profit, they look to make that profit from you and they are likely to do whatever they can get away with.

boingy

subjecttocontract said:

In my experience it's best to treat all financial organisations with contempt......hope for the best & expect the worst. They are in business to make a profit, they look to make that profit from you and they are likely to do whatever they can get away with.

Sadly, that does seem to be generally true. Most of the banks currently have decent headline savings rates but if you look at their whole range of accounts you'll find easy savers and ISAs offering barely above 1%. 

Reddleman79

Thank goodness for MSE. It helps when navigating the Sainsbury's method of 'Variable' interest rates.

subjecttocontract

boingy said:

subjecttocontract said:

In my experience it's best to treat all financial organisations with contempt......hope for the best & expect the worst. They are in business to make a profit, they look to make that profit from you and they are likely to do whatever they can get away with.

Sadly, that does seem to be generally true. Most of the banks currently have decent headline savings rates but if you look at their whole range of accounts you'll find easy savers and ISAs offering barely above 1%. 

According to the media, banks are currently making enormous profits off of the back of rising interest rates. They are raising mortgages rates whilst failing to increase savings rates sufficiently. 

mebu60

pajada said:

So, last week, with Sainsbury's Bank offering one of the better savings interest rates around (highlighted on MSE), I opened a Defined Access account. This week, I saw on MSE that the rate had increased from 3.76% to 4.01%. Great, I thought. Until I checked online. My account was still paying the old rate. So, after just 8 days, I've had to open a new account and request the closure of the 'old' one to get the higher rate. I know this has been the practice of many banks for a long time. But it's still deeply frustrating! Other accounts, including RCI, Marcus etc automatically offer higher rates to their existing customers. That, in my book at least, is how you win loyalty. 

Yep, most institutions have their foibles. Think positive. Your funds are now getting 4.01%, 0.25% more, the modest interest accrued in the previous issue is also getting 4.01% instead of nothing and your local recycling centre will get all the duplicate documentation you are about to receive :-)

jimjames

I've been with Chip for the last few months. Every time the rate is increased it is applied to the account immediately, no need to close and also instant access with no restriction on withdrawals 

janusd

I gave up on Sainsburys Bank back at Issue 41 - the hassle of closing/opening/documents in the post just got tedious... don't mind it when Cynergy do it as it's all done online, but SB just became a real pain - I doubt that I would ever open a savings account with them again.

rabbit87

I have also been opening a new account each time and keeping the postman busy but i have left the previous accounts open with just £5 in them. How do you close them do you need to phone up?

Also how is the interst payed. It is meant to be payed annually. Do you get the interest added on and returned to your nominated bank account when you close it or do you have to wait a year. Thanks.

SonOfPearl

rabbit87 said:

I have also been opening a new account each time and keeping the postman busy but i have left the previous accounts open with just £5 in them. How do you close them do you need to phone up?

If you don't see an option to close the accounts just send them a secure message to ask to close them.