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Why Has My Bank Reduced The Interest On My Savings Account ?

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I have a savings account with the Royal Bank of Scotland, and the rate of interest was 3.36% Net and

suddenly they have reduced it to 3.28% Net.

When i asked them they said economic curcumstances.

Everything is going up in price but my savings are going down.

I no longer understand the world we live in.

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I have a savings account with the Royal Bank of Scotland, and the rate of interest was 3.36% Net and

suddenly they have reduced it to 3.28% Net.

When i asked them they said economic curcumstances.

Everything is going up in price but my savings are going down.

I no longer understand the world we live in.

Don't be foolish. Deflation has hit moo-cows and iPods which means that you have no reason to be unhappy. This is the economic circurmstance they refer to.

If the stats office find an inflationary cow in the field, perhaps a robotic one paying council tax, stealth tax, petrol tax and every other mother-****ing tax, then you'll have reason to complain.

Welcome to the land of lies and cheap mortgages.

If you feel like you're being ****ed over it's because you are.

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I have a savings account with the Royal Bank of Scotland, and the rate of interest was 3.36% Net and

suddenly they have reduced it to 3.28% Net.

When i asked them they said economic curcumstances.

Everything is going up in price but my savings are going down.

I no longer understand the world we live in.

Could it be that your are covering the losses of the bank due to 'bad debts'?

Bluechutes

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I have a savings account with the Royal Bank of Scotland, and the rate of interest was 3.36% Net and

suddenly they have reduced it to 3.28% Net.

When i asked them they said economic curcumstances.

Everything is going up in price but my savings are going down.

I no longer understand the world we live in.

Because they don't want your business, for some reason

- invest elsewhere :)

ABB

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If RBS so much as look sideways at my ISA, I'm so going to close down all my accounts with them!

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If RBS so much as look sideways at my ISA, I'm so going to close down all my accounts with them!

Don't forget to transfer your ISA as opposed to withdrawing it otherwise you will lose its tax free status!!

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Its because they have already sucked you in :o

Yeah Halifax just reduced my ISA rate by 0.25 % too!!! I thought that was damn rude of them too!!!

I took out an ISA with Halifax but didn't get the paperwork in time to get the money in the bank. Don't care anymore ;)

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Because they don't want your business, for some reason

- invest elsewhere :)

ABB

I can't believe it's because they think interest rates are going down in the future. Probably a bit of fleecing on their part, but most likely to cover bad debts. Someone has got to pay for the loony borrowers mistakes and you bet your life it won't be the banks.

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I can't believe it's because they think interest rates are going down in the future. Probably a bit of fleecing on their part, but most likely to cover bad debts. Someone has got to pay for the loony borrowers mistakes and you bet your life it won't be the banks.

Don't buy it. There was a concerted effort to sign up for the ISAs for the next year and then come 4 May down the rates go. I bloody month. It was planned from the outset. It has nothing to do with prevalent interest rates, and everything to do with the cartel style decisions that go on in banking apart from the traditional competition times (ie. right at the end of the financial year).

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I noticed both my savings accounts received a drop in interest over the last couple of months too; my cynical take was that they expect interest rate rises in the future and by dropping them when it's quiet and a lot of people may not notice, when they're forced to raise them to match a future BOE rise it will just put them back to the rate they were before.

er, does that make sense? I've had a bit to drink tonight...

Edited by WaitedSoLong

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It's a con, pure and simple :angry:

A&L punted their market leading 5.2% ISA in every paper, every website and on telly in the "ISA rush" before April 5th...and promptly cut it to 4.5% a week later. Took me in anyway. They also chopped their internet savings from 5.15 to 4.25 in one fell swoop. I moved mine back into my old Egg account at 4.5%...the mystery missing money 3 days during transfer probably cost me more than an extra .25% will earn me, but if everyone did the same....

How do they get away with not sending out advisory emails informing customers they've cut their rate? They send me plenty of loan adverts that they "feel sure will interest me"! :angry:

Actually, if I hadn't had a few cans I'd compose an email to the FSA on that very subject...internet-administered accounts yet a global email about IR changes can't be done? Anyone would think they didn't want to tell customers they'd cut the IR rate :rolleyes:

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First Direct seem to have cut their rate too. Even though my balance is 1k up on last month the monthly interest is only a quid more.

:(

Edited by devslim

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I figured that any self-respecting Islander shouldn't be troubled by a few bottles of Bitter and Twisted and couple of wheatbeers, so I sent this to the FSA...

Dear Sir/Madam,

As ever, before the ISA deadline on the 5th April, internet ISAs and other accounts were heavily promoted in the media. And, as ever, many banks promptly cut their savings rates a week or two after the "ISA rush".

I accept that interest rates on most accounts are liable to fluctuation; this is not the basis of my complaint. I have several internet based accounts with several banks, all of which are not averse to sending me adverts via email, yet not one appears to be capable of informing me, via email or otherwise, that the interest rate on my account has been lowered.

My purpose in writing is to request that the FSA considers intervening to ensure that banks inform internet-based account holders immediately of any changes to interest rates. The fact that the banks currently do not do this is clearly due to a reluctance to inform customers of such changes; there is certainly no technical barrier to supplying such information as a matter of course.

Yours Sincerely,

Disgusted of Swindon

If 2000 of us write....they'll ignore 2000 of us :lol:

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Don't forget to transfer your ISA as opposed to withdrawing it otherwise you will lose its tax free status!!

Dont start me on transferring ISA - I had one with halifax last year

opened alliance and leicester this year - 4.75 compared to 5.2 - no brainer

I told halifax i wanted to switch - they say it will take 30 f..king days and then afterwards they will dispatch a cheque......

A bit unimpressed i then attacked the clerk at the other end - why not send it electronically?? you have all the details..

no it has to be by cheque ...

so i ask him if they wll be paying me the interest between the time of closing the account, sending the cheque and the cheque clearing

Cashier - no sir, interest is terminated when account closed...

so i pushed him to say who is getting the interest whilst the cheque is clearing

thats right - Halifax is taking all my interest while the cheque clears - f..kers!!!

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Guest Bart of Darkness

Could it be that your are covering the losses of the bank due to 'bad debts'?

Bluechutes

It's a wild and wacky theory but it just might be true. :(

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I have a savings account with the Royal Bank of Scotland, and the rate of interest was 3.36% Net and

suddenly they have reduced it to 3.28% Net.

The bank of England is printing money to the tune of 13.1% year-on-year, minus a 2% for GDP and you have your debasement rate. In that context the 0.08% difference between your bank rates matters little.

Inflation is insidious, it robs people without them even noticing... and when they eventually do it's far too late.

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It's a con, pure and simple :angry:

A&L punted their market leading 5.2% ISA in every paper, every website and on telly in the "ISA rush" before April 5th...and promptly cut it to 4.5% a week later. Took me in anyway. They also chopped their internet savings from 5.15 to 4.25 in one fell swoop. I moved mine back into my old Egg account at 4.5%...the mystery missing money 3 days during transfer probably cost me more than an extra .25% will earn me, but if everyone did the same....

How do they get away with not sending out advisory emails informing customers they've cut their rate? They send me plenty of loan adverts that they "feel sure will interest me"! :angry:

Actually, if I hadn't had a few cans I'd compose an email to the FSA on that very subject...internet-administered accounts yet a global email about IR changes can't be done? Anyone would think they didn't want to tell customers they'd cut the IR rate :rolleyes:

The A+L accounts were fixed for a year so if you signed up at 5.2% / 5.15% then you have it fixed.

combination of bad debts and hikes coming (what waitedsolong hinted at) imho

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The bank of England is printing money to the tune of 13.1% year-on-year, minus a 2% for GDP and you have your debasement rate. In that context the 0.08% difference between your bank rates matters little.

Inflation is insidious, it robs people without them even noticing... and when they eventually do it's far too late.

Correct!

Which is why the price of Gold is going ever higher - they can't print Gold you see.

It now makes a lot of sense to start moving cash into Gold - you'll at least 'preserve' some of your wealth.

Good luck.

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The bank of England is printing money to the tune of 13.1% year-on-year, minus a 2% for GDP and you have your debasement rate. In that context the 0.08% difference between your bank rates matters little.

Inflation is insidious, it robs people without them even noticing... and when they eventually do it's far too late.

I agree. I think this is the crux of the problem, the banks are inflating our savings away, are you better putting money into an asset rather than cash?

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I agree. I think this is the crux of the problem, the banks are inflating our savings away, are you better putting money into an asset rather than cash?

In the longrun, yes! Property is an obvious choice but we all know the problems with buying at the top of a market, tangible stuff with intrinsic value is best, be it metals, commodities or land, and obviously some equities. Bond holders get slaughtered in an inflationary world.

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How do they get away with not sending out advisory emails informing customers they've cut their rate? They send me plenty of loan adverts that they "feel sure will interest me"! :angry:

Actually, if I hadn't had a few cans I'd compose an email to the FSA on that very subject...internet-administered accounts yet a global email about IR changes can't be done? Anyone would think they didn't want to tell customers they'd cut the IR rate :rolleyes:

I bank with Smile and I always get emails notifying me of interest rate changes.

As a bank they have been faultless, service is excellent.

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  • 339 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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