Kent Reliance - variable rate ISA - not treating customers fairly

nergelag

I've saved with Kent Reliance for at least 10 years because their rates always seem to have been competitive.  I've recently checked my easy access Variable Rate ISA and discovered that the rate they are offering for new customers is 4.82% but I'm only receiving 4.31%.  I called them and they told me the new ISA was a completely new product - of course it's not, it's just another easy access variable rate ISA.  They also admitted that existing customers were not notified when a new (identical) product appears at a better rate.  I suggested that they were failing to treat customers fairly and made a complaint.  The outcome of the complaint was £20 compensation but said they were unable to increase my rate, I would have to apply for the 'new' product and then call them to transfer my current balance to the new rate.  Left me feeling it would be less admin to just move to another ISA provider.  

mebu60

It's fairly standard practice I'm afraid. Many companies operate this way. The clue is that they usually have an issue number on the product. A minor benefit is getting the accrued interest on the previous issue compounded in to the latest issue. Just be sure to instruct the provider of the new product, whether KR or someone else that accepts transfers-in, to execute the transfer so that the ISA wrapper is not lost. 

subjecttocontract

Surely the Kent BS are in business to make profits which they can then lend to mortgage borrowers. The more they make the more they can lend. I don't see it as their job to keep you informed of the best paying ISAs, I see that as your job. The 4.82% ISA is being offered to attract NEW savers to Kent BS, not existing savers. But as they have now told you, you can open it and transfer if you wish.

Andreg

Unfortunately lots of banks and building societies do this.  They exploit customers who do not have time (or inclination) to be opening new accounts and switching money around frequently.

The FCA published a discussion paper in 2018 but little appears to have come of it.

Banks may have to give loyal customers better interest rates (moneysavingexpert.com)

This seems like something that MSE should be campaigning on.

Albermarle

However not all savings providers do this. Some guarantee that all customers will get the latest rates.
The only one I am 100% sure about is Ford Money, but there are others.
However their current easy access ( and flexible) cash ISA is only paying 4.4% but is covered by this.

Our Best Rate Guarantee

Enjoy our best available rate, even after you’ve opened your account. On variable rate products you’ll always enjoy the same rates as our new customers on like-for-like products. If your rate ever decreases, we’ll be sure to let you know at least 30 days before the change.

auser99

Just create a new one and ring them to move it over. Will take a couple of days, but you benefit.

xylophone

I've had various accounts with KR for years.

Just open the new account then give them a ring - they will capitalise the interest in the old ISA and transfer it to the new.

I did this recently with an easy access on line account - the phone was answered quickly, the customer assistant very helpful and all done within a  day or two.