Moneybox 'misleading' cash isa

olivelover

Furious at Moneybox.opened a cash ISA with moneybox after seeing their 5.10 % rate on movey saving website. after pretty much 14 days they eailed to say they were reducing the interest to 4.5% how ever all over the websites they are still advertising it as 5.1%. I contacted them and they said its variable so can reduce it when they like . I asked if I could then just open another with their advertised rate at 5.1 and close the one they reduced to 4.5 and they said no as that rate was only for new customers!! they dont mention that you are likely to only get that  rate  for 2 weeks either though. Very dodgy I think

eskbanker

olivelover said:

Furious at Moneybox.opened a cash ISA with moneybox after seeing their 5.10 % rate on movey saving website. after pretty much 14 days they eailed to say they were reducing the interest to 4.5% how ever all over the websites they are still advertising it as 5.1%. I contacted them and they said its variable so can reduce it when they like . I asked if I could then just open another with their advertised rate at 5.1 and close the one they reduced to 4.5 and they said no as that rate was only for new customers!! they dont mention that you are likely to only get that  rate  for 2 weeks either though. Very dodgy I think

Can you share the exact wording used in the email?

Their 5.11% AER rate is still being advertised, as you say, but it's structured as a 4.45% underlying rate plus 0.66% bonus rate for the first year, so is that perhaps what they were trying to explain?

olivelover

They started by thanking me for reaching out then said

Thank you for reaching out regarding your Cash ISA interest rate. We understand your concerns and appreciate the opportunity to clarify. As you mentioned, the interest rate on your ISA is variable, meaning it can change over time. While we periodically adjust rates based on market conditions, these adjustments can differ for existing and new accounts. Unfortunately, we are unable to change your interest rate to the higher rate currently available for new customers. We strive to offer competitive products, and we regret any disappointment this may cause. We've flagged your message as feedback for our wider team to review, and should we offer any promotional rates for existing customers in the future we’ll be sure to let you know.

eskbanker

olivelover said:

They started by thanking me for reaching out then said

Thank you for reaching out regarding your Cash ISA interest rate. We understand your concerns and appreciate the opportunity to clarify. As you mentioned, the interest rate on your ISA is variable, meaning it can change over time. While we periodically adjust rates based on market conditions, these adjustments can differ for existing and new accounts. Unfortunately, we are unable to change your interest rate to the higher rate currently available for new customers. We strive to offer competitive products, and we regret any disappointment this may cause. We've flagged your message as feedback for our wider team to review, and should we offer any promotional rates for existing customers in the future we’ll be sure to let you know.

But that makes no mention of an actual rate reduction to 4.5%, did you go to them asking why that's what shows on the app (as its display omits the bonus component)?

olivelover

Thats what they sent me when I complained about it.  just realised what you meant about the introductory extra at least I do still get the introductory bonus so its a bit more than 4.45 however it was still decreased within 2 weeks of opening the account and the 5.1 full rate was still avaialble to new customers which I think is shocking
Nigel, we’re writing to let you know that the underlying interest rate on your Moneybox Cash ISA is changing from 4.7% AER (variable) to 4.45% AER (variable). This change is in response to the Bank of England’s recent base rate decrease.
If you’re also currently eligible to earn an introductory bonus rate, this will continue to apply until it expires

eskbanker

olivelover said:

Thats what they sent me when I complained about it.  just realised what you meant about the introductory extra at least I do still get the introductory bonus so its a bit more than 4.45 however it was still decreased within 2 weeks of opening the account and the 5.1 full rate was still avaialble to new customers which I think is shocking
Nigel, we’re writing to let you know that the underlying interest rate on your Moneybox Cash ISA is changing from 4.7% AER (variable) to 4.45% AER (variable). This change is in response to the Bank of England’s recent base rate decrease.
If you’re also currently eligible to earn an introductory bonus rate, this will continue to apply until it expires

But the currently offered 5.11% is 4.45% underlying plus 0.66% bonus, so, assuming you qualified for the new customer bonus, you will be receiving that 5.11% rate across the first year (unless it changes before the end of the year), just like any new customers opening today would?

It was previously 4.7% plus 0.47% to give a total of 5.17%, so they've effectively increased the bonus to offset most of the reduction in the underlying rate.

Edit: I think I see what you mean now - if you signed up under the previous deal, you're effectively now earning 4.45% + 0.47% = 4.92%, and you envy those joining today who are benefitting from a bonus that's higher by 0.19%?  If so, I don't think that's misleading as such - the rate is variable and there's never going to be any guarantee that existing customers will have access to better deals available to new customers.

Beeblebr0x

Transfer the ISA to another provider as it's not a fixed rate product?