We have temporarily withdrawn certain savings accounts in order to protect our customers from rate reductions

We have taken the unusual step of withdrawing many of our savings products from the market in order to delay reducing the interest rates paid to existing account holders.

The Society’s accounts became extremely attractive nationally as a result of recent declines in savings rates caused by the introduction of the Bank of England’s ‘Funding for Lending’ scheme. This scheme, created to help boost the flagging economy, has allowed many high street lenders to access very cheap funding from the central bank. As a result these lenders no longer need to attract savers in order to fund the money they lend out, leading to a significant drop in the rates paid.
 
Ian Keeling, our Head of Sales & Marketing said: “The market reduction in savings rates meant that our already competitive rates became best buys and we consequently attracted large inflows of savers’ money to the Society. In order to ensure our growth is balanced and sustainable we needed to curb this inflow and rather than taking the ‘normal’ course of action and cutting our rates, we have instead chosen to temporarily close several new accounts to new customers.
 
Savers have been particularly hard hit since the financial crisis began and by taking this action we ensure that for now, any reduction in rates is delayed. Unfortunately the cost of doing this means that we will have to make some rate cuts in the coming weeks but we still expect our accounts to remain above current market averages.”

Head office:

Vernon Building Society
19 St Petersgate
Stockport
SK1 1HF

Tel: 0161 429 6262
Fax: 0161 477 3303
Email: info@thevernon.co.uk

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

*The 'AER' stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Vernon Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (registration number 195475).  You can check this on the Financial Services Register. We are also a participant of the Financial Services Compensation Scheme (FSCS). Details of the scheme can be obtained from www.fscs.org.uk

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

For independent information about financial products and services visit  www.moneyadviceservice.org.uk

© 2018 Vernon Building Society
All rights reserved