Rise in Building Societies restricting products

25th January 2013

2012 really was the savers’ ‘Annus Horribilis’ as rates for savers plummeted in the months leading to the end of year, caused by the knock on effect of the Funding for Lending Scheme.

In the wake of continued rate reductions, and a clear sign that providers are awash with cash, savers’ woes are being increased by the rising number of building societies restricting their product range, either to local investors or existing members only.

Fewer providers offering competitive products or indeed any products nationally, leaves even less choice and competition in the ever dwindling savings market.  The Funding for Lending Scheme continues to be disastrous for savers, with providers slashing rates and pulling competitive products, and now we have building societies beginning to restrict products.

The good news however is if you are local or an existing customer for one of the affected building societies it could be worth checking out what you can get.  Ipswich Building Society for example offers come fairly competitive Fixed Rate Cash ISAs which are now restricted to local investors and Principality offers competitive rates of 2.30% on its notice account Promise Saver and 2.60% on its Promise ISAs, only available at its branches, all of which are in Wales.

Providers who have restricted their products to locals or existing members only

Building Society

Change Type

Products affected

Cambridge

Branch Only

Selection of savings products

Ipswich

Local Investors only

All savings products

Monmouthshire

Local investors only

All savings products

Principality

Branch Only

Selection of savings products

Vernon

Local investors only

All savings products

Earl Shilton

ISA Transfers

Transfers in no longer allowed

Dudley

Branch/Existing Customers Only

All savings products

Loughborough

Local investors /Existing customers only

All savings products

Stafford Railway

ISA Transfers

Transfers in no longer allowed

Tipton & Coseley

Local investors only (through post codes)

Selection of savings products

Beverley

ISA Transfers

Transfers in no longer allowed

Swansea

Local Investors /Existing customers only

All savings products

Progressive

Local Investors/Existing customers Only

Selection of savings products

Leek United

Members only

Selection of savings products

 

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