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Do you know how much interest you get on your bank account?

Community Veteran
Posts: 26,379
Thanks: 634
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Registered: 10-04-2007

Do you know how much interest you get on your bank account?

If you don't you are not alone. Many banks seem to deliberately obscure this information especially if it is an account opened some time ago.
http://petitions.number10.gov.uk/savingsummarybox/
Quote
We the undersigned petition the Prime Minister to mandate savings account providers to include the current interest rates on every statement.

With interest rates nearing 0% , its time the millions of UK savers received the same protection as credit card holders.
Most savings statements don't tell customers the current interest rate; even online accounts only let you click through to a list of scores of accounts together, often with similar names.
This means its a nightmare to find out what you’re earning and many are under the false impression they get more than they do.
With interest rates changing rapidly this has left people struggling to know and find out there exact situation.
There is no technical barrier to publishing a bespoke rate, its omission is possibly deliberate profit by confusion.
To solve this, a savings summary box should be included in every online and offline statement. This should list, with explanation, the current rate, any bonus rate (and when it ends), penalties for withdrawal, what institutions the account is linked to for the financial services compensation scheme (and if its covered).
This is an easy step that could greatly improve the transparency of many savings accounts; better enabling the UK public to ensure they’re maximising their interest. Never has that been so important.
jelv (a.k.a Spoon Whittler)
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19 REPLIES
Community Veteran
Posts: 6,735
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Registered: 02-02-2008

Re: Do you know how much interest you get on your bank account?

I know mine, it's zero. But it's also zero on overdraft balances up to £250.
I operate it online (or by phone) and can transfer to a savings account in seconds.
So, unusually maybe, I'm happy with my bank. And have been ever since I joined them nearly 20 years ago.
Community Veteran
Posts: 7,154
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Registered: 30-08-2007

Re: Do you know how much interest you get on your bank account?

Agree with HP Sauce, have been on-line banking almost since Nat West introduced it, is very easy to transfer money around current, deposit accounts, ISA's etc, and indeed between mine and my wife's accounts if required. The way to go. Security seems to have been stepped up recently as well, with the introduction of their Rapport software.
When its added monthly to those accounts that receive it, the interest rate (such as it is) is provided.
If the interest rate moves into a negative figure (as has been speculated) does this mean we have to pay the bank!!?
Experience; is something you gain, just after you needed it most.

When faced with two choices, simply toss a coin. It works not because it settles the question for you. But because in that brief moment while the coin is in the air. You suddenly know what you are hoping for.
pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: Do you know how much interest you get on your bank account?

I have two account with RBS 1 a Tesco account, get regular letters with a statement of interest rates.  2 with Nat West, no info given, but is available via the web
Euge
Grafter
Posts: 502
Registered: 11-10-2007

Re: Do you know how much interest you get on your bank account?

I'm made aware of it but I don't pay attention since the amount of money I deal with would make no difference when it comes to interest.
Moderator
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Re: Do you know how much interest you get on your bank account?

I'm just happy to see it still there whenever I look.
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Community Veteran
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Registered: 05-04-2007

Re: Do you know how much interest you get on your bank account?

Whenever the interest rates change, my bank (Smile) sends me an e-mail containing the new rates. Means I'm kept nice and informed, though it does make for rather depressing reading...
[quote author="Smile e-mail, 22 October 2008"]
- savings account - reduced to 3.75% gross / AER
- cash mini ISA - reduced to 4.25% gross / AER
- standard current account - reduced to 1.76% AER
- student current account - reduced to 1.76% AER
- smile more current account - reduced to 1.76% AER
[quote author="Smile e-mail, 2 March 2009"]
* savings account - reduced to 0.50% gross / AER
* cash ISA - reduced to 1.00% gross / AER
N/A

Re: Do you know how much interest you get on your bank account?

Got to agree about Smile - they do keep you informed and yes, it is depressing reading. Wouldn't change though 'cos it is a good bank to use.  I also deal with Britannia Building Society and we shall know at the end of April if it is going to merge with the Co-operative Bank. The interest rates with Britannia are better so it should be easy to move money about if they do merge.
techguy
Grafter
Posts: 2,540
Registered: 12-09-2008

Re: Do you know how much interest you get on your bank account?

I'm just in the process of changing from smile to first direct so can elbow the subs I pay (and their system apparently forgot to pay a couple of standing orders recently, when they rang up they had no idea why, hmmm must remember that when my credit card is due next)
Although the current account doesn't pay interest you can set a sweep so that any money above a certain threshold you set on a certain date each month is moved into a savings account (currently 0.70% AER) so have set that but probably like most of you the money comes in and goes out again just as quickly.
Community Veteran
Posts: 1,100
Registered: 05-04-2007

Re: Do you know how much interest you get on your bank account?

A sweep can work both ways. Used to be with First Direct until they tried to pull a fast one by changing the terms and conditions without notifying me. The result of the change would mean I would have had to pay a monthly charge on my bank account. Normally keep up to date with the interest paid on each account, but currently the amounts are not worth the effort looking or reading the literature when sent.
Community Veteran
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Registered: 02-02-2008

Re: Do you know how much interest you get on your bank account?

Quote from: Spider
Used to be with First Direct until they tried to pull a fast one by changing the terms and conditions without notifying me.

Well they certainly notified me (several times), and it was ages ago, and it didn't affect me negatively anyway.
If they didn't notify you surely you had grounds for complaint.
techguy
Grafter
Posts: 2,540
Registered: 12-09-2008

Re: Do you know how much interest you get on your bank account?

Think they have to notify you if its to your disadvantage don't they?
Community Veteran
Posts: 1,100
Registered: 05-04-2007

Re: Do you know how much interest you get on your bank account?

Quote from: HPsauce
Quote from: Spider
Used to be with First Direct until they tried to pull a fast one by changing the terms and conditions without notifying me.

Well they certainly notified me (several times), and it was ages ago, and it didn't affect me negatively anyway.
If they didn't notify you surely you had grounds for complaint.

I did and then closed my account. Basically First Direct are aiming themselves at higher paid customers and so want to offload those of us who were more financially challenged on income, but never in debt.
Community Veteran
Posts: 6,735
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Registered: 02-02-2008

Re: Do you know how much interest you get on your bank account?

You only need to have some other product, like a credit card, to avoid all standing charges.
Community Veteran
Posts: 1,100
Registered: 05-04-2007

Re: Do you know how much interest you get on your bank account?

In which case they have changed the bank account again. The min deposit per months was £1000 or you faced standing charges for the account irrespective of what other accounts you held. Prior to that introduction FD encouraged you to move to that account from the basic cheque account (not sure if that still exists though).