Forced into the Manchester Sleazy Saver 0%

[carpetmuncher]

Today I got a letter saying my Premier instant Issue 2 account 1.75% is being changed to the Easy Saver which, because I have less then £1000, is now 0% interest. (Not obvious from the literature) I thought I was entiled to 30 days notice the 3rd Feb deadline is only days away.

[carpetmuncher]

"For current and instant access accounts, they will have to give customers at least two months’ prior notice of any disadvantageous interest rate changes (except if the account explicitly ‘tracks’ a reference rate; e.g. 2% above the Bank of England Base Rate or the change is an explicit part of the contract)." The FSA.

[1User]

Carpetmuncher,

Manchester were always an unfriendly bunch - particularly to savers coming to the maturity of a fixed bond. Equally, they were also a baggers favourite on the grounds their lack of a branch network made them simple to take over. Supposedly - no one ever did!

However I fear you exaggerate your predicament. Surely they are paying you 0.05%? (And don't call me Shirley...)

In truth you have at least three obvious options:

1) Don't take no "crepe" from parasitic scum like them. Close your account to show them who's the man.

2) Keep the account open to maintain your membership and console yourself the loss of interest to you (circa £2.95 per £100) is a fair price to pay. Not least because they probably don't want your business. It's "hurting" them more than it hurts you. This is a marathon not a sprint.

3) Swallow your pride - don't cut off your nose to snub your face. Pony up whatever it takes to reach a balance of £1,000 and shove it in their ISA at 2.25%. A reasonable 1 year ISA isn't going to give much more than 3% right now so the opportunity cost is about £7.50 per year on the total £1,000 balance.

1User

PS And then to get your ounce of flesh make sure to vote AGAINST the directors ESPECIALLY the remuneration payouts each year. Remember your Star Trek (from the Shakespeare I believe) "Revenge is a dish best served cold."

[carpetmuncher]

The band off interest starts at £1000. Hence 0%
Might withdrawl to £100 or take the ISA option.
However my point still stands they have broken regulations.
They should have given me two months notice of this evil deed.
I fear though that people are too stupid and apathetic to realize they deseve windfalls. We can only hope for bidding wars now.

[HB]

Are you sure you are currently getting 1.75% on your existing account?
Their website says Premier Instant Issue 2 is paying 0.83% since 1 August 2011, and that's on balances above £1000. Below £1000 they pay 0.05%, and would therefore not be breaking the 'rules'

Disappointing thing is that they have no half-decent accounts worth opening at the moment. Must be struggling to lend...

[Oggy]

PIBS.

[patientperson]

Are you sure you are currently getting 1.75% on your existing account?

I also received a yearly statement last week and can confirm that the rate is specified on the statement as being 1.75%.

Strange thing about this whole affair is that the Premier Instant Issue 2 is still an open issue.
IMO it would be clearer for all to close this issue and open a new one for clarity.

[patientperson]

Intersting extract from their website where competitive is questionable.

'At Manchester Building Society we pride ourselves on offering our customers competitive products and the outstanding service that they deserve'.

An option for those with still > £1000 is to transfer into their FR Saver Iss 1 with 2.25% and maturity 28-02-2013. This transfer can be done by telephone with immediate effect.

[HB]

Strange thing about this whole affair is that the Premier Instant Issue 2 is still an open issue.

I think you have a different account then:

"Premier Instant Issue 2" is a closed account
"Premier Saver Instant Issue 2" is an open account

Spot the difference, lol

Both pay 0.05% on under £1k anyway

[planteria]

i have what is just called "Easy Access".
it was a 'City Savings' account...but morphed.

fwiw Manchester Building Society seem an ambitious bunch. not ambitious to pay their members good rates on savings accounts...but perhaps one of the Building Societies most likely to merge/acquire other businesses, or even raise money by demutualising, perhaps(Man City Blue)