AA interest rates - take care!

AlanF

Following MSE's excellent article on savings, last month my wife and I opened accounts with ICICI and the AA and Icesave. The AA were very slow at all stages (only one to insist on posting ID - all the rest did things electronically) and it took around 3 weeks from applying to getting the account set up. This was the AA Internet Access Account linked from the MSE article.

I note now on checking our account that this account is paying a not very competitive 6.05% annual interest. If you go back to AA web site, they are now offering their best interest rates on a different account, the AA Internet Access Plus account. The one we opened, in December 07, was the same without the Plus! The new account offers 6.25, not 6.05. MSE's current rates are actually wrong, probably because the AA have not yet updated their website from their 1.1.08 interest rates rise - their web page suggests 6.5%, actually it has dropped to a far less competitive 6.25%.

Actual rates available on http://www.theaa.com/savings/rates.html - the account we opened in Dec 07 from MSE's link is already listed as historical.

I think this trick of switching better interest rates to new accounts, and leaving existing customers on uncompetitive rates is one of the nastiest features of the modern way of doing business. Last year I realised I was paying BT £25 a month for broadband (a historical account) when the dearest of their new accounts was £19.99 (and faster connection speeds!). They never thought to point this out to me (but did give me a £40 goodwill payment when I told them how dishonest I thought they'd been!).

Rant over!

Alan

FridaysVictim

Thanks AlanF for pointing out the rate change . I just got on the phone (0845 602 6203. Lines are open Monday to Saturday 8am to 8pm.) and they changed my account from the old internet account paying 6.05% to the new AA Internet Access Plus Account at 6.25% . Thanks again .

Sillychuckie

see http://blog.moneysavingexpert.com/2008/01/04/the-aa-savings-account-pure-hypocrisy/