Bank account opened by pens. trustee

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nobintag

Guest
My pensioneer trustee has opened a one month fixed term account for me with a low interest rate of 0.6%.
The same institution is offering much higher rates on demand accounts. I have questioned my pensioneer trustee on this but cannot get any sense.
Can I insist on the higher interest bearing account being opened for me?
I am loathe to transfer any contributions to this low interest bearing account.
Please help!
 
Hi Nobintag, can you provide some more details on your situation?
Is this an ARF or a live pension scheme? and if so what type? This will help posters to understand your position and hopefully give you sound advice. Your priciple is correct, why should you accept a low rate account when much more competitive offerings are available elsewhere.
 
Marc said:
However, a fact that is not widely known is that many Pensioneer trustees receive a commission payment from the bank holding the trust bank account (note that often, this is in addition to the fee charged by the Trustee for running the scheme). This fact is rarely disclosed to the SSAS member but should really be a factor in one's ultimate choice of a Pensioneer Trustee.

Consequently, the rate of interest on offer to scheme members is rarely the most competitive rate in the market since obviously the bank can't afford to pay the trustee a commission and pay a competitive interest rate as well.
Click to expand...

Does the Pension Ombudsman have a view on this I wonder?
 
What type of pension is it? If its self directed then you are the investment manager and in charge of all investment decisions.
 
There is no reason why the PT would prevent you from opening the higher interest account - however sometimes the banks will not offer the higher interest rates to non-personal account holders. It's very annoying but there isn't much you can do. I suggest you tell your PT to get you a better rate with a different bank. PTSB will generally operate SSAPS accounts at "decent" interest rates as will BOSI and BOI.
 
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