Abbey won't pay up

What difference does it make that you only paid 12 payments - how many were you supposed to have made in 12 months? Normally these type of accounts stipulate that you can only make 1 monthly payment up to a max of 250, which you very clearly did throughout.

Just as a thought, you're not getting confused with AER % are you? If you are a basic rate tax payer, your 8% AER would be 6.4% net and if you are a higher tax payer, then, about 5% may be correct.

Let us know how you get on.

before tax deduction it was 93 pounds, I calculated (laboriously) that at

Mrcheerful

What was in the account T&C..?

This happened to me once with a regular BS account. I lost the bonus. So I wrote to the BS quoting word for word the original marketing leaflet. They coughed up 'as a goodwill gesture'. IMO they didn't have a leg to stand on and they were afraid of having to cough up for all the other savers they had doubtless short-changed.

Do you really think any of the others are any better ?

At 12:31:44 on 09/02/2007, MrCheerful delighted uk.finance by announcing:

Where did you get 0.75% from? I get about 0.64% if calculated monthly, and around £128 interest (including the 12th interest payment).

You wimp! You should have rejected the goodwill gesture and insisted on them coughing up "properly".

I used 8 percent divided by 12 .

even at your calculation I am still short by 35 quid or so.

The nearest I can se in the t and c is that 'in any month where a deposit is not made, the interest will revert to 0.1 percent for that month only' So I suppose the last month had no payment as the standing order would have gone through after I closed the account. However I had kept the account for the stipulated year.

I do not know whether any other bank account is any better. The Halifax offer of 100 quid and 6.1 percent looks good on the outside. I had an alliance and leicester account as an experiment and they were rubbish, so they are off the list.

Mrcheerful

Only you mistyped on your calculator and used 9 percent divided by 12.

Not after, before. I suggest if month 1 began on the day you paid your first deposit, and if your first standing order payment came in before the beginning of month 2, it would have come in during month 1. Accordingly your 12th payment would have come in in month 11 and nothing at all in month 12.

That would lose you about 0.56% of £3000. That's about £17.

It could also mean that because the 2nd £250 came in during month 1, it would be ineligible for earning any interest at all, since it is an excess payment you weren't allowed to make.

That would lose you about 7.9% of £250. That's about £20.

I'm assuming the contract rate is about 7.9% corresponding to a non-compounding 0.66% per month and an AER of 8%.

Barclays offer 12.5% but I just couldn't be bothered. Regular saver accounts are hardly worth it, unless you can open several different ones at the same time and can afford to pay in the maximum every month.

In message , snipped-for-privacy@invalid.invalid writes

No, higher rate tax is NOT deducted at source.

Their terms are (and I have them in front of me are:

1. Term i. The account will mature automatically into a ... account after the close of business on the 1st day of the month following your 13th monthly payment .......... Sorry Ray

However the OP may still have a case on grounds of misleading advertising and/or miainformaeion from Abbey staff.

I have raised it as an official complaint, I'll pass on the results when they arrive. I would have remembered the above restriction if I had actually read it, I only noted the big details I am afraid, I am a bit annoyed about the branch staff not knowing the details though.

Mrcheerful

You should refer this to the

The FOS would be my next step after raising it as an official ABBEY complaint and not getting a sensible answer. I used the FOS once before over my mortgage, the B and W BS immediately caved in, wrote off the balance and gave me 100 quid for my trouble, so, yes, the FOS obviously do wield some real power.

Mrcheerful