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Getting Started
MikeP
Posts: 10
Registered: ‎19-01-2014

Confused at the new Cash ISA interest rates as of 31 Jan 2014

[ Edited ]
Due to the recent error NatWest has made with interest rates for Cash ISA's I have now edited my opening message to include this event which occurred several days after opening this topic.

So, we now have two issues:-
1. If you have had an issue with NaWest wrongly giving you interest as in it only gave a few pounds as opposed to the correct sum please make your comments here.

2. If you are not happy with how NatWest have handled the interest after the 31 Jan 2014 where it reduced it's rates again please make your comments here.

Apologies but have I got this wrong......
I have a Cash ISA which has been active for a good number of years.
At the moment my interest has an AER of 1.75% but as there is very nearly £50,000 under the current Cash ISA interest rates when it reaches this figure I would attain an AER of 2%.
However, as of 31 Jan 2014 all Cash ISA interest rates will change and for anyone who has over £25,000 will have an AER of 1.5%
 
This means instead of increasing from 1.75% to 2.00% it will in fact drop to 1.5%
Is this correct?
 
If so I certainly know where my money is going and it will not be staying with a natWest!
Beginner
Pedro
Posts: 1
Registered: ‎21-11-2013

Customer fairness

Hi.

Just received your 'HELPFUL' email telling me that my E-ISA interest rate is plummetting once again. Second time in just over a year. It's great to hear that you are 'SIMPLIFYING' your interest rates! Tell the truth. We are not that daft. You are 'REDUCING' interest rates to your loyal customers. 3% to 1.5%. You get money for 0.5% (for the last few years from the Bank of England and you pass it on to us mugs for a loan rate of 19%. As 'DAVE' says, "You and the Energy suppliers are all in this together'.

I hear a Spanish High St. bank is giving 3% on current accounts. TIME TO SWITCH!

Pedro

 

and to think I've been with you since 1972. Need my head looked!

Newcomer
trevor
Posts: 1
Registered: ‎21-11-2013

Re: Customer fairness

Ditto everything you have said Pedro, Natwest helpful banking my arse....you are a joke!

If I wanted a cash isa with a really poor interest rate I would open one.....but I don't!

 

You are going to see people leave you in droves....I hope you are happy!

 

Whoever thinks this is a good business idea needs shooting; my dosh is going to a helpful bank

Newcomer
Neil
Posts: 1
Registered: ‎22-11-2013

Re: Customer fairness

Quite right, I have also just received this piece of  corporate speak twaddle.

 

I have been a customer of this lot for 25 years  and this is the last straw.

Getting Started
MikeP
Posts: 10
Registered: ‎19-01-2014

Re: Confused at the new Cash ISA interest rates as of 31 Jan 2014

Anyone care to comment on my above please?

Community Manager
SallyE
Posts: 3,795
Registered: ‎06-01-2014

Re: Confused at the new Cash ISA interest rates as of 31 Jan 2014

Hi Mike,

Thanks for your comments.  Are you saving for anything in particular?

You are quite right, the rates will move to 1.50% for you at the end of the month.  Rates for instant access savings aren’t great across the industry at the moment I’m afraid.

There are alternatives such as Stocks and Shares ISAs or Fixed term investments which might be worth looking into.  Have you checked our Savings pages on our website?  These might be able to help understand your options.

 

Are any of our other community members saving? How are you getting the most for your money?

Getting Started
MikeP
Posts: 10
Registered: ‎19-01-2014

Re: Confused at the new Cash ISA interest rates as of 31 Jan 2014

Many thanks Sally.

So they are dropping... How did I miss that?

 

Well, this is a shame, especially as I was just about to add a further £53,000 to my accounts.

 

The £53k I would have put part into both my wife's and my ISA's with the rest invested somehow.

However I'm not so sure about the entire £103k now.

 

I will have to look at funding it elsewhere.

 

Thanks again

Mike

Getting Started
MikeP
Posts: 10
Registered: ‎19-01-2014

Re: Confused at the new Cash ISA interest rates as of 31 Jan 2014

Well, it does not surprise me there were no further replies.

I also got the figure wrong for additional monies to deposit... It was not £53,000 but nearly £65,000.

So, with nothing positive the bank can offer me I'll deposit this £65k in either tomorrow or Tuesday and then look at moving it to another financial institution that can provide me a better interest.

 

No way am I accepting a drop in my ISA as well so I shall move that £50k as well.

Thats £115,000  you will lose from me NatWest, a mere drop of small change to you I am sure and as such why we do not get any follow back from NatWest in trying to keep it's customer.

Community Manager
SallyE
Posts: 3,795
Registered: ‎06-01-2014

Re: Confused at the new Cash ISA interest rates as of 31 Jan 2014

Morning Mike -

I’m sorry you’re unhappy with the changes to the interest rates, we wouldn’t want to lose you as a customer because of this. 

 

Have you had a chance to look at the other alternatives mentioned last week? Please do get in touch to discuss if you need any more information, or pop into your local branch and they can run you through your options.

 

Let us know how you get on.

 

 

Getting Started
MikeP
Posts: 10
Registered: ‎19-01-2014

Re: Confused at the new Cash ISA interest rates as of 31 Jan 2014

Thank you Sally.

Yes, I did check the other options but nothing grabbed my attention.

But my question is 'why should I have to look at other means of investing'? I did not change anything, NatWest altered how I invest so why should I then have to look elsewhere?

Not only that but I fail to see why the interest rates have been reduced for higher Cash ISA account holders, especially as there is talk once unemployability falls below 7% the interest rates will increase.....

One would believe this latest move in reducing rates is a business move by NatWest to cushion rate rises when rates do increase.