Raisin 1 yr bond rate dropped after I submitted application

Nova1307

Hi folks, 

I submitted an application for a one year bond on Raisin with IS bank with an advertised interest rate of 4.85%. There was a small banner saying "rate dropping tomorrow" but I assumed I would lock in the higher available rate on the basis that I completed and submitted the application before the rate dropped as is the case when opening bonds directly with banks. I immediately received an email from Raisin confirming my application had been received and asking me to fund my raisin account. 

I then funded my raisin account over the next couple of days before receiving a 'congratulations your account is now open' email but with a rate of 4.45%.

At no point did I receive an email from raisin explaining that the rate had changed after I submitted my application on their website and although it may be buried within the T&C's I feel a bit misled and feel that this should have been advertised a bit more prominently or I should have received a notification of the rate change. I have cancelled the bond via the 14 day cooling off period but as the cancellation process takes 7 business days I am likely to be out of pocket by almost 2 weeks worth of interest that could have been earned had the funds stayed in my Chase easy access account with a rate of 4.75%.

Has anyone experienced the same? Is there any hope of getting some compensation for the lost interest? Obviously not the end of the world but I'll certainly be wary not to do the same again with Raisin. 

Thanks.

subjecttocontract

* The message said rate dropping tomorrow.
* You took 2 days to fund the new account.
* Raisin are a platform not a bank. They don't send the money to the bank until they have it all.
* The bank don't complete until they have the money. The Raisin process is shown on their website.
Id suggest you should have moved quicker than you did.

art123_2

I opened a six month bond last week, which offered a £100 bonus for new customers to Raisin if you paid in a minimum of £10,000.  The rate was advertised as changing the following day and I was going to open it with £1000, and then transfer the other £9000 the following day.   Luckily enough I phoned their customer service department first to check, and was told that the account had to be fully funded with the £10,000 before the rate changed the following day, in order to get the higher rate.  

oric6502

Hi - it looks like the same has happened to me. I opened this bond (4.85% 1 year) a few days ago and on Tuesday I got an email from Raisin:

"Thank you for choosing Raisin UK.
You recently applied for a fixed rate bond with Isbank UK through the Raisin UK marketplace. Following your application, Isbank UK have confirmed that they will decrease the interest rate on this savings account to 4.00 % AER on 14.11.2024.

1.  Funding:

To secure the rate that you applied for, we kindly ask that you fund your application before 14.11.2024. The rate applicable to your savings account is fixed once your application is approved and the rate will stay the same throughout the duration of the fixed term."

I transferred the money to Raisin yesterday which they confirmed (yesterday) in an email:

"Thank you for transferring the full funding amount to your Transaction Account for your Isbank UK savings account application. Your money is now being transferred, and you can no longer withdraw your application."

Today got an email saying the bond's been opened at 4.45%?  

Nova1307

oric6502 said:

Hi - it looks like the same has happened to me. I opened this bond (4.85% 1 year) a few days ago and on Tuesday I got an email from Raisin:

"Thank you for choosing Raisin UK.
You recently applied for a fixed rate bond with Isbank UK through the Raisin UK marketplace. Following your application, Isbank UK have confirmed that they will decrease the interest rate on this savings account to 4.00 % AER on 14.11.2024.

1.  Funding:

To secure the rate that you applied for, we kindly ask that you fund your application before 14.11.2024. The rate applicable to your savings account is fixed once your application is approved and the rate will stay the same throughout the duration of the fixed term."

I transferred the money to Raisin yesterday which they confirmed (yesterday) in an email:

"Thank you for transferring the full funding amount to your Transaction Account for your Isbank UK savings account application. Your money is now being transferred, and you can no longer withdraw your application."

Today got an email saying the bond's been opened at 4.45%?  

Strange that I didn't get the same email. The email I did get from them immediately after applying said

"Should the bank amend the rate advertised before you have fully transferred funds and the rate is lower than the rate you originally ordered, we will notify you in advance about your options. 

If you don’t transfer your full deposit amount before this time elapses, we will automatically cancel your application. "

None of this happened. I didn't get the notification that the bank had lowered the rate and they didn't automatically cancel my application even though the rate had changed while I was funding my raisin account. 

I'm going to call them tomorrow to ask why I didn't get the same notification as you although it looks like you funded before 14/11 but still got a lower rate. 

oric6502

Nova1307 I've sent them an email so am just waiting to hear back from them.