MSE News: Banks launch current account price war

Former_MSE_Helen · 9 January 2012 at 6:17PM

This is the discussion thread for the following MSE News Story:

"New switching bribes mean for the first time five providers have hardcore promotions vying for the coveted best-buy crown ..."

Read the full story:
Banks launch current account price war

Pincher · 10 January 2012 at 1:28PM

It feels like the good old days again.

0% Balance Transfer, current account incentives.
When are we going to see BOE+0.5% tracker mortgages?

IveSeenTheLight · 10 January 2012 at 1:37PM

Interesting.....

Does anyone have more information i.e. tie in period, else can you port from one account to the other to gain the incentives accross them all.

I'm a Halifax user and there is a little aggrievement that they are willing to pay £100 for new customers, but loyal existing ones are not incentivised to save.

Financially it makes sense for me to leave and join another organisation to benefit from the joining incentives.

Or here's a radical thought, instead of paying people to port, why not use that money to increase the rates for members, thus enticing people through normal incentives and also rewarding existing members.

callum9999 · 10 January 2012 at 2:19PM

IveSeenTheLight wrote: »

Interesting.....

Does anyone have more information i.e. tie in period, else can you port from one account to the other to gain the incentives accross them all.

I'm a Halifax user and there is a little aggrievement that they are willing to pay £100 for new customers, but loyal existing ones are not incentivised to save.

Financially it makes sense for me to leave and join another organisation to benefit from the joining incentives.

Or here's a radical thought, instead of paying people to port, why not use that money to increase the rates for members, thus enticing people through normal incentives and also rewarding existing members.

Because the £5 per month is already one of the most generous benefits offered by any current account (if not THE most generous for most people), and a free £100 to switch is far more enticing to people than increasing that to £6 etc.

gman1981 · 10 January 2012 at 2:50PM

Not sure I understand the HSBC offer. It says it's available for existing customers. How can that be if this ia a switching service?

I'd quite like a current account with 6% in-credit interest!

corbyboy · 10 January 2012 at 10:27PM

Do any of these accounts not require you to use a switching service. I would be happy to move bank but really don't want the risks of a switching service.

rb10 · 10 January 2012 at 11:58PM

gman1981 wrote: »

Not sure I understand the HSBC offer. It says it's available for existing customers. How can that be if this ia a switching service?

I'd quite like a current account with 6% in-credit interest!

The idea is that you have a current account with them that you don't use as your main account, you can switch your main account to them.

In reality, just set up a couple of 'dummy' standing orders from another account (going to one of your other accounts) and switch these.

IveSeenTheLight · 11 January 2012 at 12:26AM

callum9999 wrote: »

Because the £5 per month is already one of the most generous benefits offered by any current account (if not THE most generous for most people), and a free £100 to switch is far more enticing to people than increasing that to £6 etc.

Really,

It's 2.4% for someone with £2,500 in their account for the month.
If you have more, then the percentage reduces.

What would stop me switching to the Santander product, get the £100 bonus and then 5% thereafter.

I could also transfer in £1000 to the Halifax to get the £5 monthly bonus

realaledrinker · 11 January 2012 at 12:49AM

Dont't forget the Co-operative Bank £100 switching incentive for "Stoke City supporters"

http://www.britannia.co.uk/_site/affinity/scfc/index.html

callum9999 · 11 January 2012 at 12:54AM

IveSeenTheLight wrote: »

Really,

It's 2.4% for someone with £2,500 in their account for the month.
If you have more, then the percentage reduces.

What would stop me switching to the Santander product, get the £100 bonus and then 5% thereafter.

I could also transfer in £1000 to the Halifax to get the £5 monthly bonus

I don't think many people on here have £2.5k lying around in their current accounts unused do they (though maybe that says more about my background than anything!)? But I take your point, I forgot to take account of those other offers (even though they only last a year whereas Halifax is permanent). I personally keep a couple of pounds in there at any time so the interest must be in the hundreds of %!

There is nothing at all stopping you doing that - I'd advise you to do so if you regularly have that amount of cash.

IveSeenTheLight · 11 January 2012 at 1:58AM

callum9999 wrote: »

I don't think many people on here have £2.5k lying around in their current accounts unused do they (though maybe that says more about my background than anything!)? But I take your point, I forgot to take account of those other offers (even though they only last a year whereas Halifax is permanent). I personally keep a couple of pounds in there at any time so the interest must be in the hundreds of %!

There is nothing at all stopping you doing that - I'd advise you to do so if you regularly have that amount of cash.

One of the things you can do witht he Halifax Reward account is have up to three accounts.
One in Mr's sole name, One in Mrs sole name and one joint.

You can then get the £5 on each account from transferring one account to another.

There is nothing to say the amount has to come in from an external source

MSE News: Banks launch current account price war

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