Some new savings account applications temporarily suspended
We have today decided to temporarily suspend all but our Postal Business, Business Online and Instant Access accounts to new applications, while we review the interest rates on our Cash ISA, Junior Cash ISA, 30 Day Notice, Postal, Monthly Savings and Young Saver accounts.
We will honour any applications that are already in train as of today, 1 May 2020 and you can continue to operate your existing accounts with us as normal.
Society Chief Executive, Karl Elliott, said: “We have been watching and waiting to see how the market reacts to the Bank of England’s historic Base Rate cut to 0.10% on 19 March.
“As always, we want to ensure that we manage the business prudently for the benefit of all our members, while continuing to offer long term value to our savers.
“As a result, we have already notified holders of our Business Online, Postal Business and Instant Access accounts that their rates will be reducing by 0.30% and 0.25% respectively on 7 May – giving new rates of 0.25% (was 0.55%) and 0.25% (was 0.50%).
“We’ve ensured that these continue to compare favourably with both the new Bank Base Rate and other banks and building societies, some of which are now offering rates as low as 0.00% for instant access accounts.”
Of the decision to temporarily close our other accounts to new applications, Karl added: “Having received an unprecedented number of applications for our other accounts in recent weeks, we are withdrawing them for a limited time while we decide what our new rates on those accounts should be.
“While we truly appreciate the interest these new customers are showing in the Society, and are delighted to welcome them, the last thing we would want to do is open an account for someone on one rate, knowing that it is likely to fall in a week-or-so’s time, because we believe in being as transparent as we can be.
“I’m also conscious of the need to manage the workload of our team at a time when we are operating on a skeleton staff in order to fulfil, in a safe way, our role as a key service provider, in line with the Government’s social distancing guidelines.
"Our team have been pulling out all the stops to process increased numbers of applications, but I’m acutely conscious that savings account opening is not strictly considered to be an ‘essential’ function at the present time.”
Our savings accounts – other than our Postal Business, Business Online and Instant Access accounts – are being temporarily withdrawn from sale with effect from 5pm today. Meanwhile, our new rates will be announced soon and we hope to make all our accounts available again as soon as possible.
In the meantime, you can still open a Postal Business, Business Online or Instant Access account if you wish, at the new rates outlined above.
If you have any questions regarding our savings accounts, please email us.