Jeffp1 wrote: »
I have recently puchased the max index linked certificates in the belief that at the moment they will deliver 1% plus RPI ie around 6.1% tax free as is being stated by many including you!
However,I have just been told by a financial adviser that this is not true and that the marketing for this is deceptive ! What you actually get is the DIFFERENCE between RPI when you buy them and the anniversary date +1%, so if inflation stays at 5.1% for next 12 months I will only get 1% !!!
please confirm if this is correct as you have been quoting that you get 6.3% tax free, which does not appear to be the case. The Fin advisor said it does not clarify this on line and you need to read the printed literature from the PO. I welcome your comments and clarification.
cashferret wrote: »
I think the issue goes beyond the AER not being a good descriptor of "ditch and switch" accounts. I think that banks offering high rates and then dropping them sharply to very low rates is wrong; I think it should be illegal for banks to offer savings accounts with interest rates below a certain threshold.
I am in the process of taking over the finances of my elderly parents. Like many older people of their generation, my dad became ill first and handed financial control over to my mother several years ago. She wasn't equipped to deal with them but refused help until recently. I'm finding tens of thousands of pounds in their various a/cs that have been earning 0.1% interest for years. These are their savings that should be providing them an income in their old age.
I think this is morally criminal and ought to be legally criminal. Elderly and vulnerable people simply can't keep on top of the admin load involved in constantly having to change bank accounts and the rest of us shouldn't have to work so hard at it either. Banks are making money by lending out our deposits; they owe us a fair return.
Martin, please help get a law passed! Surely there's a great campaign here!
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