Furious parents are branding Alliance & Leicester "wicked" after the bank cut the interest rates on its child saver accounts from 5.25 per cent down to 3.65 per cent.
As of July 1st, children will First-Saver accounts will suffer the cut, despite the Bank of England freezing their rates at 4.75 per cent since August last year. This is Money reports that the a massive 30.5 per cent less will be paid in interest to children, making the account one of the worst in the high street.
Account holders are furious about the cuts imposed by the bank.
Norman Ham who invests on behalf of his granddaughter, said: "I take a very dim view of this. I went into the branch at Newport to complain and I went bananas. I said it was not fair to exploit children. I was furious. And I couldn't believe it when the branch staff just said: 'Well why don't' you just go to Nationwide, they've got a much better rate of interest.' I did just that - but really, what a way to run a bank!"
A statement from the bank read: "We have taken the decision not to proactively target the children's market and withdrew First-Saver to new customers with effect from January 14th. Subsequently the rate of interest paid to existing First-Saver account holders will reduce . . . from July 1st."
Parents: "Alliance & Leicester is wicked"
Parents: "Alliance & Leicester is wicked"
Thu, 12 May 2005
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