Nationwide calls for voluntary code on savings products

Nationwide Building Society is calling on the industry to play fair to savers and inform them when introductory interest rates are due to end. Increasingly, savings providers are pricing their products to achieve best buy status – by offering a high rate of interest that lasts for a limited period of time – however, many do not inform their savers when the interest rate falls to a lower, less attractive rate.

Nationwide would like all savings providers, who use introductory deals to lure their customers in, to adopt a voluntary code that ensures they pre-notify their savers that the rate they receive is due to change. Apathy is high amongst consumers and some providers are taking advantage of those who do not closely monitor the return they receive on their savings.

Matthew Carter, director for savings at Nationwide, says: “The savings market is a highly competitive one and providers are vying to take market share. Some providers seem more interested in boosting profit and achieving best buy status than actually offering long-term good value to their customers. At Nationwide, we think providers should play fair by their savers and do the decent thing. That’s why we want the industry to adopt a voluntary code of practice.

“For people who lead busy lives, constantly switching accounts makes no sense. With many savings accounts, with introductory deals launched last year, savers could soon be languishing in accounts paying lower rates having enjoyed potentially high returns. We believe most people want a consistently good rate of interest. At Nationwide our accounts do not have a host of restrictions and our members know the account they sign up to will offer long-term good value.

“Consumers are told when their mortgage deals are due to change and it shouldn’t be any different for savers. With introductory deals becoming more common-place, the Society is concerned that it is becoming even harder for savers to make the best decision.”