Telenet bank Intelligent Finance (IF) is lowering the interest rates available on its savings a...
Telenet bank Intelligent Finance (IF) is lowering the interest rates available on its savings accounts. The move has added further credibility to accusations that some online banking operations have lured customers to their services with loss leading rates only to change them at a later date to the detriment of the customer.
The interest rate payable on sums of £1-£999 held in an IF savings account will come down to 5.26% from 5.5% as of 7 August.
IF has stressed though, that this new rate remains higher than it was in December 2000, despite the three interest rate cuts the Bank of England has made in the intervening period.
Customers holding over £1000 in an IF savings account, however, have not faired so well since December 2000. Interest rates on savings of between £1,000 and £9,999 have also come down from 5.5% to 5.26% but back in December 2000 customers were offered a rate of 5.65%.
Customers holding amounts over £100,000 have been hit worst. Offered a rate of 6.25% in December 2000, the rate is currently at 6% and will go down to 5.6% when the new rates come into effect.
Commenting on the rates change, Jim Spowart, Chief Executive, said: "We have maintained our savings rates as long as possible in the interests of our customers. They remain extremely competitive and our customers can enjoy even higher returns on their savings by offsetting them against credit card, personal loan or mortgage borrowings."
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