‘Building society lower my savings charge from 2.7pc to .1pc without telling me’

Posted by admin on August 8th, 2014 in Savings

A reader was dismayed to uncover her income accruing just .1pc curiosity in a cost savings bond, when the account had previously paid two.7pc. She insists she wasn’t told of the charge alter

 

I am in discussions with Cheshire Building Society concerning a fixed-fee bond that matured some 7 months ago. As I did not hear from Cheshire at the time, and as I depend on curiosity for income, I was dismayed to get a letter dated six months later on with a individual financial savings summary showing a recent curiosity fee of .1pc.

I contacted Cheshire to be advised that a maturity statement would have been sent at the time, with each other with choices for reinvestment of money.

Further to that, as no directions had been obtained, and there being no equivalent merchandise to “roll over” my bond into, the curiosity fee had been set accordingly at .1pc.

My son-in-law also helps me check and deal with such paperwork and I am therefore definitely certain that the maturity statement was never received. As issues stand, the Cheshire is not on my side. Can you please alter its mind on this?

PR, Herts

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The previous one particular-12 months bond had been paying 2.7pc on your capital of a tiny more than £105,000. The bond you could have had subsequent paid one.6pc.

I am assured that 1 month ahead of the outdated bond’s maturity an instruction pack was sent to your current tackle. Then a 2nd letter was dispatched stating that the account had been transferred to the default rate of .1pc.

Prior to I grew to become concerned you moved the money to a new one.4pc one-12 months fixed-price bond, which was what was obtainable by then, with, as a concession, the interest becoming paid from when you complained.

More to my involvement Nationwide, which owns Cheshire Constructing Society, acknowledged that leaving the income to earn just .1pc in an instantaneous-access account had not been your intention. Given that you produced no withdrawals and you contacted the society as quickly as you received the financial savings summary statement, it is now, as a gesture of goodwill, backdating the new investment to when the earlier bond matured rather than when you complained and furthermore making it possible for it into the one.6pc solution you had missed out on.

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