IRISH banks and building societies that advertise "very competitive rates of interest" may want to double check their marketing material after a British court found in favour of a building society customer who claimed that his society had not delivered a very competitive interest rate, but a rate very close to the bottom of the interest rate table.
The Norwich County Court judge found that Mr Robert Anthony, who had taken out a five-year Tessa (a special tax-exempt account) with the Norwich and Peterborough building society was entitled to an additional £285 interest - the amount he would have earned if he had in fact been saving with a top performing company.
Here, certain deposit takers regularly advertise their interest rates as very competitive low tax Special Savings Accounts are often singled out for special marketing. Careful savers would tend to shop around for best rates, using sources like National Deposit Brokers rateline service for up-to-date rates. British commentators said last week this case could open the floodgates for millions of investors to take their bank or building society to court. It may also very well inspire an Irish depositor to check the claims their institution made when the account was opened, and what rates are being paid now and possibly act accordingly.
Those who make extravagant claims for returns on deposits should ensure they can justify their competitive assertions.