Castletrust Bank 1 year fix 6.2% complaint

gwiddecommbe

I signed up to the 6.2% 1 year fixed interest rate on 12th July as recommend on MSE best rates table. However just after the 14 day cooling off period in 27th July I receive the following misleading email :

Your account XXXXXXXX has benefited from our ‘Best Rate Promise’, which means we have applied an increased interest rate to your account. This increase has been applied automatically, please log in online or through the mobile app to view these changes. All other terms of your account remain the same.

However contrary to the email above when I Iog into my account the new interest rate displayed is now 5.98% which is less than the original rate I signed up to!! Surely this is misleading at best and also not sure it is right they should do this just after the cooling off period considering my money is now locked away and cannot be withdrawn? 

What are members thoughts on this please and my next steps? I have emailed them to complain. 

PixelPound

See https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#complain

boingy

Just make sure you are comparing like with like. Are the 6.2% and the 5.98% both AER or is one of them a monthly rate?

gwiddecommbe

Hi yeah definitely comparing like with like as when I previously logged in the rate displayed was 6.2% and now stating 5.98%. Also feels underhand as thy have waited until just after the cooling off period to decrease the rate and sent me a misleading email that stated they were increasing the rate which (I suspect they sent wrong email template). I believe there will be others in my position as they pulled this account literally on the same day after I opened it so there will be a number of others just after their cooling off period having this email notification. 

TiVo_Lad

I suspect this is simple human error. Their 1 Yr Fixed has reduced from 6.2% to 5.98% for new customers. It's likely that they've applied the rate to existing bonds as well as new ones by mistake. I'm sure it'll get sorted out as soon as they realise what's happened.

gwiddecommbe

Hmm yes I suspect it is human error so will await their response on why they have reduced my rate. Their T&C's state

Castle Trust Bank will not change the interest rate for the duration of the term of your Fixed Rate e-Saver. Your Fixed Rate e-Saver will benefit from ‘Our Best Rate Promise’, which means if we increase the interest rate for the product you have applied for at any point in the 14 days following the opening of your account, you will automatically receive the higher rate. If we reduce rates don’t worry, you will still receive the same rate that you applied for. If our rates do change, you do not need to contact us, we will do everything and then send you confirmation of the new terms applicable to your Fixed Rate e-Saver.

gwiddecommbe

Definitely an error as there is a document in my online account from 26th July (day before I got the email) stating the funding window had closed and my interest rate was locked at 6.2% for the full term

boingy

I agree that's it's just an error on their part and I would expect them to fix it very quickly.
It is a bit worrying that a bank can make that sort of error though!

Rollinghome

gwiddecommbe said:

I signed up to the 6.2% 1 year fixed interest rate on 12th July as recommend on MSE best rates table. However just after the 14 day cooling off period in 27th July I receive the following misleading email :

Your account XXXXXXXX has benefited from our ‘Best Rate Promise’, which means we have applied an increased interest rate to your account. This increase has been applied automatically, please log in online or through the mobile app to view these changes. All other terms of your account remain the same.

However contrary to the email above when I Iog into my account the new interest rate displayed is now 5.98% which is less than the original rate I signed up to!! Surely this is misleading at best and also not sure it is right they should do this just after the cooling off period considering my money is now locked away and cannot be withdrawn? 

What are members thoughts on this please and my next steps? I have emailed them to complain. 

Same here. Phoned, and after listening to a saxophone for a while, was told they are very busy and I was number 39 in the queue. So sent an in-app message.

Seems we aren't alone. 

P933alilli

Same thing has happened to me this morning! Got an e mail of an improved rate on 6.2%, logged on and its gone down to 5.98%!

passau91

Ditto. Let’s hope it is an error. If not I will be demanding my money back to (hopefully) put in the next best paying account.