Bank savings account bonus rates

[austinbob]

Beware - rant coming up

Every year the Halifax Bank tells me that the bonus rate for my savings accounts are coming to an end and the interest rate will default to something approaching zero. (I'm sure this is true for many other banks as well).

I have been given the opportunity to do nothing and accept the near zero interest rate. OR.. I can change to a new (identical savings account) with a new bonus rate of x% (always less than last year!!)

Question??

Why can't the bank just automatically change my account to the latest bonus rate? Without me having to go through the annual hassle of applying for it through the bank or on line. By the way I went to my local Halifax branch to go through the annual update ritual only to be told I could now ONLY do it on line!!

I know that the real answer is the bank relies on people just accepting the reduced near zero interest rate.  This makes money for the bank and screws the customer - which I think is criminal - fraud even!!

What do other people think?  Is there anything we can do to stop this practice which is tantamount to fraud.

Bob Austin

[EtchedPixels]

What do other people think?  Is there anything we can do to stop this practice which is tantamount to fraud.

Spend it on trains 

You can put upwards of £30,000 ! into premium bonds. The rate of return is on average nothing special (except for higher rate tax payers as its not a tax hit). Instead of having to argue with the bank every year every so often you randomly get £25 or more if lucky.

It's not the best return versus all the fancy things financial advisors do with stocks and funds but for somewhere to stuff cash you get can get back it's not bad. Also it's government backed and it doesn't go down - which means it's a handy place to stick money you know you will need and can't risk.

Alan

[mokjumbo]

Just think yourself lucky that you`ve got money to save!!!Wish I had your problem!

[austinbob]

What do other people think?  Is there anything we can do to stop this practice which is tantamount to fraud.

Spend it on trains 

You can put upwards of £30,000 ! into premium bonds. The rate of return is on average nothing special (except for higher rate tax payers as its not a tax hit). Instead of having to argue with the bank every year every so often you randomly get £25 or more if lucky.

It's not the best return versus all the fancy things financial advisors do with stocks and funds but for somewhere to stuff cash you get can get back it's not bad. Also it's government backed and it doesn't go down - which means it's a handy place to stick money you know you will need and can't risk.

Alan

Alan

I would love to spend all my cash on trains. (Don't think my wife would let me get away with that though!)

But my savings are there for emergencies - of which I have had many over the last year or so.

£3000 on roof repairs
£2500 on general repairs - shower units, damp in the kitchen etc.
£1500 on vets bills for our beautiful elderly greyhound.

Web Saver accounts are very flexible and good for such unexpected expenditure and based on my father's experience of premium bonds (who has over £30000 invested in them) provide a better return overall with better flexibility (if you keep updating the savings accounts to make sure you get the latest best interest rates).

The question still is... Why do we have to go through the annual ritual with the banks to get the best interest rates

Bob Austin

[port perran]

All banks have customer advisors who are there to help and advise their valued customers.
Unfortunately, the only help and advice you get is that which is advantageous to the banks.

[ChrisWV10]

Santander 123 account pays 3% on balances over 3K up to 20K. Ok you pay tax but still nets more than 0.5% on an ISA and the extra cashback on council tax and utility bills more than compensates for the £2 monthly fee.

Just have to be careful not to overspend!

C

[austinbob]

Just think yourself lucky that you`ve got money to save!!!Wish I had your problem!

What can I say...

I'm sure you meant this as a joke BUT!!!!

I'm a pensioner with a c**p pension.

I rely on my savings to supplement my income. I've accumulated my savings over many years by not taking expensive holidays or buying unnecessary goods and only spending out when I need to. ( Essential expenditure includes N gauge items!!)

It's not a question of I've got money to save - I have to save money!!

Bob Austin

[Malc]

Unfortunately, Santander scores very poorly on customer service. So it's OK as long as you don't have any problems.

[Agrippa]

A friend of mine had accounts with the bank which  Santander took over , the Abbey I think. Santander
made such a mess of his affairs he shut all his accounts after a few weeks and went to another bank.

With interest rates so low there is little Joe public can do to increase the yield on savings,apart
from scrabbling about to get an extra half a percent. my savings are with Nationwide who
bailed out The Dunfermline BS a few years ago when they made a series of disastrous
business decisions. Nationwide pay 2.1 % on my ISA , probably I could get a slightly better rate,
but the actual extra cash would be quite small.

I think we're stuck with low interest rates despite ever increasing living costs.

[MJKERR]

I review my savings every six months
I too have been advised the rate for the Halifax accounts will end shortly, but I had already taken that into account
It's easy enough to open a new account (when the offer appears), transfer the funds, and close the account
I am also free to move my money elsewhere

This has been an ongoing practice with banks; benefit the new customers, ignore the loyalty

If you think going into a Halifax branch and asking about opening an online account gives an unusual response, try visiting a Bank of Scotland branch where the accounts are offered
You're advised they can't advise you and you need to use the telephone, and on doing so the Halifax member of staff can't process your application without sending the documents to you, and not even available in the branch!

[Bealman]

Interesting thread...  happens here in Australia too. In fact I just recently had to jump through similar hoops.

[mokjumbo]

Just think yourself lucky that you`ve got money to save!!!Wish I had your problem!

What can I say...

I'm sure you meant this as a joke BUT!!!!

I'm a pensioner with a c**p pension.

I rely on my savings to supplement my income. I've accumulated my savings over many years by not taking expensive holidays or buying unnecessary goods and only spending out when I need to. ( Essential expenditure includes N gauge items!!)

It's not a question of I've got money to save - I have to save money!!

Bob Austin

No,not a joke.I`ve worked hard all my life and have never been able to earn enough to pay my bills and put any by for a rainy day.I`ve never had a holiday away,and definitelly no excesses.N gauge is my only extravagance,and that is only as,and when,I can afford it.So I repeat I wish I had a problem with my savings!

[OwL]

Unfortunately Halifax score pretty low on customer service and don't seem to recognise customer loyalty.
Take your business elsewhere.
Depends on your circumstance but some banks (TSB FOR INSTANCE) offer a 5% interest on balances up to £2000 (they won't pay any interest on any amount over that though) only stipulation is that you have at least £500 per calendar month deposited into the account.
This is a permanent deal also.

May be worth looking at this?

If your not awre visit this website:
http://www.moneysavingexpert.com

Lots of good impartial advice on things like your issue.

[Agrippa]

This has been an ongoing practice with banks; benefit the new customers, ignore the loyalty

According to some stuff I received from the Nationwide during the week, they won't offer accounts
for new customers only and will reward existing customers with exclusive accounts.

We shall see, I take these statements with a pinch of salt. I have non-interest bearing accounts with
The Bank of Scotland and Halifax (same outfit) and never a month goes by without a new set of
terms and conditions being issued.

If it was not for the security risk you'd be as well to keep your cash under the mattress.

[austinbob]

Just think yourself lucky that you`ve got money to save!!!Wish I had your problem!

What can I say...

I'm sure you meant this as a joke BUT!!!!

I'm a pensioner with a c**p pension.

I rely on my savings to supplement my income. I've accumulated my savings over many years by not taking expensive holidays or buying unnecessary goods and only spending out when I need to. ( Essential expenditure includes N gauge items!!)

It's not a question of I've got money to save - I have to save money!!

Bob Austin

No,not a joke.I`ve worked hard all my life and have never been able to earn enough to pay my bills and put any by for a rainy day.I`ve never had a holiday away,and definitelly no excesses.N gauge is my only extravagance,and that is only as,and when,I can afford it.So I repeat I wish I had a problem with my savings!

You're right of course

I am lucky to be able to put money into savings on occasions and also lucky to still be able to work at my age to help pay the bills.

Maybe its your turn for a lottery win this week!!

Bob Austin