TSB apologises for online banking problems by bumping up current account interest rates – but some customers STILL can’t access accounts
Some TSB users are still struggling to log into their accounts, will this apology be enough to keep customers from switching banks?
TSB is offering a 5 per cent interest rate on an existing current account after maintenance issues left more than a million of customers locked out of their online banking.
But as only 50 per cent of affected users are able to log in via the bank's website this interest rate may not be enough to keep customers loyal.
TSB tweeted early this morning that their mobile app and online banking services are back up and running, but some customers are still struggling with the systems.
Customers have been unable to access their cash online since Sunday evening.
Some TSB customers have even had their direct debits cancelled and their cards declined because of the maintenance issues.
The increased interest rate is a nice gesture for loyal TSB customers, but there are already similar options out there for customers looking to move away from the bank.
TSB announced the classic plus account will now have a 5 per cent interest rate for the next year, but it is only available to customers who already have the account.
Andrew Hagger, personal finance expert for Moneycomms.co.uk said: "At present TSB customers can earn 3 per cent on a maximum balance of £1,500 so that's a maximum £45 per year in interest - by increasing to 5 per cent the maximum they can earn is £75 - so an extra £30 per year (or £2.50 per month) as long as you keep at least £1,500 in your account."
"Tesco Bank pays 3 per cent but that's on a balance of £3,000 so you can earn £90 per year."
"Nationwide flex direct pays 5 per cent on max £2,500 - so that's £125 - but it's only for 1 year as rate drops to 1 per cent after that."
"It's a positive gesture from TSB which realises it needs to do something to appease its frustrated customer base - whether it's enough to prevent customers switching their accounts elsewhere only time will tell."
TSB meltdown: what are your rights?
IF you’re one of the potentially millions of customers affected by TSB’s online banking problems then here are your rights.
- Will your expenses be covered? If you suffer knock-on costs then the bank has confirmed it will reimburse you. Make a note of dates, keep reciepts and a log of how much you've been left out of pocket.
- What are the alternatives? Visit a branch or try telephone banking if you urgently need to access cash.
- Is it a data breach? The bank has denied that there has been a data breach but we've asked for more information on this and will update asap. Don't spend money in your account that isn't yours as you will be liable to pay it back.
- How to complain about your bank? Firstly, complain to TSB. If the problem is not resolved to your satisfaction after 8 weeks then you can complain to the Financial Ombudsman Service.
As well as this TSB will be waiving all overdraft fees and interest charges for small businesses customers for April.
A spokesperson from TSB told The Sun that around 50 per cent of TSB customers are able to access their banking through TSB's website and nine out of ten customers are able to fully use their mobile banking.
TSB has said that there is still no timeline for when the online services will be 100 per cent up and running for all customers again.
Online banking and app problems could drag on until the end of April, as TSB customers still struggle to access their bank accounts.
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TSB CEO Paul Pester has said: “As we moved over to our new banking platform last weekend, the landing was an incredibly bumpy one for our customers, and for that I am truly sorry.
"This is not the level of service that we pride ourselves on providing – nor is it what our customers have come to expect from TSB."
“Our teams continue to work around the clock to fix the problems that some of our customers are having in accessing their TSB accounts.
"I want to reassure our customers that the engine room of the bank is working as it should. This means that for the vast majority of our five million customers, everything is running smoothly."
“Of course, customers can rest assured that no one will be left out of pocket as a result of these problems."
TSB closed 29 branches last year because some stores were serving less than 200 people a week.
This isn't the first time that TSB customers have been locked out of their accounts, last year customers customers couldn't access their cash because of online issues.
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