TSB sharp practice to be aware of

Crankshaft1850

TSB have recently increased their savings rates for savings accounts and their ISA products. But beware! They have NOT applied the increased rates to existing savings accounts and ISAs.

This is interesting as the T&C for each account make it clear that interest rates can go up and down. No doubt if interest rates dropped TSB would be quick enough to reduce the rates paid. One imagines they are relying on the fact that most people don't check the interest paid very often - I hope thousands will now check and take action after reading this.

After the usual fruitless telephone calls with TSB I finally got the advice as follows: 1) Savings accounts - Close account and open a new one at the higher rate. Sounds easy but it isn't, as if you have more than £10k in the account you have to use an online form to close the existing account, which form doesn't work. 2) Limited access ISA - create a new ISA and transfer the funds into it using yet another online form that doesn't work. TSB are using Adobe Docusign to authenticate requests, which would be all well and good if the Docusign software could recognise my ID - which it can't as the ID (driving licence, etc) is basically designed to be uncopiable. After twelve photo attempts I gave up - it's either too blurry, too dark or too glossy.

Ultimately I still have the option to empty the savings account and open another one - losing a months interest - but the ISA is more problematic, and probably means that I will have to open an ISA with another provider and then make the transfer.

All of this additional work is wholly unnecessary if TSB would just behave ethically and increase the interest rate paid on existing accounts to that they are offering on new ones, and conform to their own T&C.

Ayr_Rage

Same with most banks and has been like this for years.

You need to have your wits about you, do your research and move to a new account as necessary.

Doctor_Who

This is interesting as the T&C for each account make it clear that interest rates can go up and down.

They say 'can' not 'will'. Unless you have a BoE base rate tracker there is no guarantee that your interest rate will rise when base rates rise. Many banks offer new issues with a different interest rate (mostly higher in the current climate) on a regular basis. There are many posts on the forum about this and some pointers to banks who do pass on interest rises (mostly it seems the newer 'challenger banks'/app only).

refluxer

TSB may have increased their rates but despite that, with the possible exception of the monthly saver, I can't see any of their other savings accounts (including ISAs) that look to be anywhere near competitive, compared with the best available savings accounts at the moment.

TSB's limited access cash ISA (for example) is paying 3.50% but you can get 4%+ from many other banks and building societies, all of whom offer full FSCS protection so you know your money is safe.

If you're going to go to the trouble of opening new accounts in order to get better rates, I would definitely start to look elsewhere if you want to get the most from your savings.

marlot

I use Hargreaves Lansdown active savings instead.   Much easier.  At the moment,  4% easy access.  6% 1 year fix.

jimjames

Crankshaft1850 said:

All of this additional work is wholly unnecessary if TSB would just behave ethically and increase the interest rate paid on existing accounts to that they are offering on new ones, and conform to their own T&C.

 If you're after decent interest rates why bother with TSB in the first place? Plenty of banks paying much higher rates consistently (like Chip)