One state-owned personal and business bank account provider has recently announced it has binned a nasty catch on its fixed rate bonds and thus improving the offering by a substantial margin, industry experts say.
Along with its fully-owned subsidiary, Royal Bank of Scotland was offering an interest rates as high as 3.8 per cent before taxes on their fixed rate offerings. However, RBS and NatWest customers taking out the accounts first had to leave their cash in 2 per cent interest rate ‘limbo’ accounts for a period of two months until the headline rates went into effect..
RBS said that all its fixed rate bonds were subject to delayed start dates when questioned as to the two month loss of 1.8 percentage points in interest. However, after consumers and campaign groups alike have voiced their displeasure with the bank’s behaviour, the financial services provider recently announced that any fixed rate bond taken up with NatWest or RBS from April 10 will pay the full rate immediately instead of being subject to the 2 month wait.
The new terms will just be applicable to the bank’s one- and two-year fixes. However, any NatWest and RBS ISA offerings, which are still currently subject to the delayed start, will soon be changed as well according to a spokesman from the banking provider.
Industry experts have applauded the move, which will undoubtedly go far to repair the tarnished reputation of a bank that has already been under fire for having to be bailed out at taxpayer expense in the wake of the credit crunch and the resultant economic downturn. However, economists and financial insiders say that RBS still has far to go before regaining the full trust of the British consumer.