This weekend, Which? criticised the building society for launching a fixed-term bond, which offers a 4.27 per cent return if savers want to invest “more than the £50,000”.
Which? said it would be writing to West Bromwich to raise its concern that the building society is acting irresponsibly by encouraging savers to invest past the FSCS watershed.
Which? personal finance campaigner Vera Cottrell, says: “Using an attractive rate as a carrot to encourage savers to breach the compensation limit is, we say, irresponsible and people need to be aware of the risks involved.”
But West Bromwich has hit back at Which? saying it did not make clear that people could invest £50,000, receive the full benefits of the bond and be fully covered by the FSCS. It also points out that joint accounts will be covered up to £100,000.
West Bromwich says: “We strongly reject allegations made by Which? that we are “irresponsibly” encouraging savers to invest more than the £50,000 limit covered by the FSCS and, in response, we are now considering legal action.
“We are extremely disappointed that Which? has not discussed any concerns about our bond with anyone from the society. Which? has yet to present the society with the basis for its alleged concerns or, indeed, the method of research that led to the publication of seriously misleading statements.”