Vanquis Bank - Wrong information
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lindabea
Posts: 1,477 Forumite
Just been on Vanquis Bank website - they're offering a 5 year fixed rate account at 2.7% AER. However, in their illustration, they say
What would the estimated balance be on the maturity date (60 months from the date you initially funded your account), based on a £50,000 deposit?
Answer - £51350
https://www.vanquissavings.co.uk/5-year-limited-offer-fixed-rate-bonds/index.aspx
Surely, 1350 is the interest earned after 1 year not 5 years as their illustration states. The other way you could interpret their T&C's is that the rate of 2.7% is over the 5 years. But this is very unlikely so I think their illustration is wrong.
That being the case, it continues to show the sheer incompetence and negligence of bank staff!! :eek:
What would the estimated balance be on the maturity date (60 months from the date you initially funded your account), based on a £50,000 deposit?
Answer - £51350
https://www.vanquissavings.co.uk/5-year-limited-offer-fixed-rate-bonds/index.aspx
Surely, 1350 is the interest earned after 1 year not 5 years as their illustration states. The other way you could interpret their T&C's is that the rate of 2.7% is over the 5 years. But this is very unlikely so I think their illustration is wrong.
That being the case, it continues to show the sheer incompetence and negligence of bank staff!! :eek:
Before doing something... do nothing
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Comments
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Just been on Vanquis Bank website - they're offering a 5 year fixed rate account at 2.7% AER. However, in their illustration, they say
What would the estimated balance be on the maturity date (60 months from the date you initially funded your account), based on a £50,000 deposit?
Answer - £51350
https://www.vanquissavings.co.uk/5-year-limited-offer-fixed-rate-bonds/index.aspx
Surely, 1350 is the interest earned after 1 year not 5 years as their illustration states. The other way you could interpret their T&C's is that the rate of 2.7% is over the 5 years. But this is very unlikely so I think their illustration is wrong.
That being the case, it continues to show the sheer incompetence and negligence of bank staff!! :eek:
I haven't read the T&Cs and have never had an account with Vanquis, but do they, by any chance, pay the interest annually/monthly to an external nominated account?0 -
I haven't read the T&Cs and have never had an account with Vanquis, but do they, by any chance, pay the interest annually/monthly to an external nominated account?
Good point - but this is what they say
You may instruct us in your application whether you wish to have interest on your Account paid annually or monthly, and whether you wish the interest to be added to the money in your Account, paid into a separate UK bank or building society account held in your name or (for a joint Account) names, or paid into a UK bank or building society account held in the name of a third party. By writing to us or amending online the details we hold for you, you may at any time: (a) change the frequency of your interest payments from monthly to annually and vice versa; or (b) change the UK bank or building society account to which interest payments are made.Before doing something... do nothing0 -
I think it's a great shame when they're offering a good rate of interest (next highest is RCI bank at 2.4%), yet they let themselves down with such carelessness.
I don't know about anyone else, but when I see this sort of thing with any company, it puts me totally off with doing any kind of business with them.Before doing something... do nothing0 -
It looks like the illustration is based on the interest being paid out to a bank account and not held within the fixed term deposit. The maturity payment would be the original deposit plus the final interest payment.yet they let themselves down with such carelessness.
I don't know about anyone else, but when I see this sort of thing with any company, it puts me totally off with doing any kind of business with them.
Where is the carelessness?
It is one example given as an illustration and then says it is based on one option.0 -
It looks like the illustration is based on the interest being paid out to a bank account and not held within the fixed term deposit. The maturity payment would be the original deposit plus the final interest payment.
Where is the carelessness?
It is one example given as an illustration and then says it is based on one option.
That's one way of interpreting their illustration, but I'm sure there will be many people like me, who would expected the final balance based on compounded interest at the end of the term. After all, they do say 'after 60 months'
Also, if you look at their other accounts (ie 2 ,3 year fixes), these show the interest based on £1000 invested and compounded for the full term as if the interest is added to the account. This shows lack of consistency, and consequently, it is an error.
'Carelessness' is that they don't seem to take any interest in expressing their conditions and the illustrations without ambiguity.Before doing something... do nothing0 -
To me the only figure that looks odd is the 'at the end of the term' figure for the monthly interest option as surely the final balance will be the principal plus the final monthly interest payment? It shows the amount you will earn in a year.
Anyway, personally, I wouldn't worry. I've had a savings bond with Vanquis since 2015 and it has operated fine. The only issue I have with it is that it transfers the monthly interest to my current account using Bacs rather than faster payments timescales.0 -
It would appear that a Vanquis rep is monitoring this forum; as within the 2 days since starting this thread, they corrected their error. Well done Vanquis. The interest in their illustration is now showing the amount you would receive at the end of the 5 year term.
https://www.vanquissavings.co.uk/5-year-limited-offer-fixed-rate-bonds/index.aspxBefore doing something... do nothing0
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