The New Top Easy Access Savings Discussion Area

x44 · 11 February at 9:55PM

You have got to wonder how many £'millions they have of savers money in issue 70 if it saves them a worthwhile amount of money in interest payments by doing this?

Creating a new issue at such a small increase and keeping those savers in issue 70 at 4.06% and not upgrading them rather than merely increase issue 70 by the 0.02%!

Of course if 100% of the savers in issue 70 close the account and transfer to issue 71 it will actually cost Charter money as closing issue 70 results in Charter having to pay out the interest "now" at closure which is then compounded into the higher earning issue 71.

CuparLad · 12 February at 9:52AM

https://forums.moneysavingexpert.com/discussion/comment/81880687#Comment_81880687

You're not really looking at this from the perspective of the bank. They have created a new issue at a higher rate because they need to attract some new money and the way to do that is be competetive in the market. It does not help them by just putting up the price of existing funds, which raising the interest rate on the current issue does. By creating a new issue, they attract the funds they need, but those funds are compartmentalised at a specific rate which can be adjusted in the future.

mebu60 · 12 February at 11:21AM

https://forums.moneysavingexpert.com/discussion/comment/81881020#Comment_81881020

And some of us are holding earlier Charter issues e.g. 69 (62 as was) at 4.18%.

gpman · 12 February at 11:29AM

https://forums.moneysavingexpert.com/discussion/comment/81881020#Comment_81881020

Exactly, and such rate adjustments are something Charter Savings Bank have history of.

Only last month I was looking at an ever increasing quantity of their NLA EA accounts I had and wondering which ones to cull as many had been reduced to a common interest rate. But then Charter made it easy for me by renaming some issue numbers. e.g. Issues 58, 63, 64 & 65 were all renamed Issue 57. I managed to cull six Charter EA accounts within the last month alone, and my remaining Issue 57 is looking very vulnerable paying only 3.90% currently.