personal finance

'Frustrating!' TSB accused of 'LYING' to customers after pledging NOT to cut interest rate


Furious customers have revealed an email from TSB, which appears to have been sent between April and May 2018, where the bank announces it will be increasing the interest rate on its Classic Plus Current Account from three percent to five percent. The email, sent to Express.co.uk by more than one customer, then goes on to add: “We promise this won’t be taken away after a year.” But in a backtrack on this pledge, TSB announced just days ago the interest rate on the Classic Plus Current Account is going back down to three percent. The change will come into effect on 2 July, 2019 – little over a year after the original email was sent out to customers.

When announcing the drop in interest rate earlier this month, TSB said it constantly reviews its rates to make sure they are both sustainable for the bank and right for its customers.

Craig Bundell, TSB’s director of personal current accounts, said: “Our Classic Plus remains one of the UK’s best current account as we continue to offer our customers the best ongoing current account interest rate available in the marketplace.”

TSB has yet to respond to Express.co.uk when asked about the original email.

The bank initially upped its interest rate after suffering a huge IT meltdown last year, during which time customers struggled to gain access to their accounts.

It has yet to specify how many customers will be affected by the reduction.

One loyal TSB customer, who we have decided not to name, said: “As a customer, it is beyond frustrating – especially when you think you have found the best interest rate.

“I even stuck around with TSB despite the mess they created after the IT failure.

“And just when you think it can’t get any worse, TSB has gone and effectively lied to customers.”

TSB customers have been advised by the bank to do nothing if they are happy with the change.

But for those who are less than pleased, TSB says customers also have the option to close or switch account without charge at any time.

The three percent interest rate on the Classic Plus Current Account applies to customers who pay in at least £500 a month into their current account.

They must have also registered for internet banking as well as having chosen paperless statements and correspondence.

At the same time as announcing the interest rate change, TSB said current account customers can earn up to £375 for recommending the Classic or Classic Plus Current Account to up to five friends if they all switch.

Friends who have been referred and switch their bank account to TSB will also receive £75 in the offer running until June 30.



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