Smile, big rate cuts!

1jim

I kind of agree with you Stuart but in terms of the current account I am not necessarily after the "best rate" but I would like a decent rate and 0.28% is no where near decent, it doesnt have branch overheads and in my view they have been quietly cutting interest rates for some time (before subprime was a household name)! The problem I have is that the CO-OP talks a lot about ethics and how it wont invest in X Y or Z all of which I agree with, it talks a fait bit about the benefits of its mutual status...again I agree with this but where are the benefits of being a member of the Co-op when they pay 0.28% on its bank account? I can walk into halifax/lloyds tsb and probably other banks and get a better interest rate without the "benefit of being mutual". Smile have to play fair by its members and stop relying on customer inertia to retain customers.....perhaps a mass exodus of members is what it will take to get the coop to relook at what being mutual means (again I would stress that I dont expect the best rates but to do expect interest rates to be "decent" in any mutual organisation)

carbonmonoxide

I'm not too bothered about the current account interest, my money never stays in there long enough! But I was thinking of going with their ISA when I got my Icesave money back.

It hardly seems worth it now other than the fact I would have total instant access, (although this is still quite appealing consdering what has happened with this Icesave fiasco).

Stuart_W

The 0.28% on the current account is indeed very unfortunate. I remember when I first joined smile the current account was almost the same as the savings account and nearly didn't bother with a separate savings account - such different times!
As accessibility is the most important aspect of a current account, I'd stick with no interest paid at all (I personally put a value on customer service, post office access and freepost cheque deposits). In my instance, if I joined a higher rate paying account, that little extra I'd receive would be more than spent on getting at my money (bus fares or petrol or stamps).
The Co-op will be well aware that anyone looking for better rates will leave, but despite interest rate cuts, to date, money is still pouring in to the Co-Op. The bank have recently made record profits, and given the current climate, I wouldn't want to say a word against the bank's management team as they seem capable of managing a bank in the way very few have been able to - so their cautious approach of the past is not one I wish to criticize now! At least some of that profit will be redistributed to members and not speculators.

HELPFUL REMINDER
If anyone does move from the Co-Op or smile, don't cancel your Co-operative Group membership - profits for year 2008 are paid in partly in December 2008 and then the rest in June 2009.

wombat42_2

Stuart_W wrote: »

HELPFUL REMINDER
If anyone does move from the Co-Op or smile, don't cancel your Co-operative Group membership - profits for year 2008 are paid in partly in December 2008 and then the rest in June 2009.

I have had Smile account for years and I know nothing about a cooperative Group membership. What is that and what benefits do you get ?

Icesaver

wombat42 wrote: »

I have had Smile account for years and I know nothing about a cooperative Group membership. What is that and what benefits do you get ?

Same here what's this all about then?

Baldur

See http://www.co-operative.coop/membership/

Icesaver

Baldur wrote: »

See http://www.co-operative.coop/membership/

Thanks, found the link at bottom of smile page, never noticed it before in all the years I've banked with them!

Filled out the membership form, but can't see how to 'link' my membership number with my smile account. Any ideas?

Thanks

Young_Offender

You do question Smile's 'ethical' policy - it may apply to their investments, but perhaps not to their treatment of customers. The way in which they launched a market-leading ISA, took loads of deposits, and then incrementally slashed rates to today's pitiful levels, smacks of the same 'pump and dump' cynicism of every other bank.

Smile never seems to advertise any more. These rates confirm that they aren't interested in competing for new business, and you wonder whether the intention is to gradually wind the operation up (perhaps if and when Britannia and Co-Op merge).

[Deleted User]

I have been with smile and previously the co-op for over 30 years and can`t fault them for simplicity and service. This last rate cut is dreadful so I will carry on doing what I have for a while ie checking my account daily and co-ordinating with my m/s money and sending money into and out of the smile current account as appropriate. I sent £9000 out last week to get a rate of 6.05% and I have a float of £300 in smile current with a savings net of a thousand or so in the smile savings account. I can`t do any more

Stuart_W

Icesaver wrote: »

Thanks, found the link at bottom of smile page, never noticed it before in all the years I've banked with them!

Filled out the membership form, but can't see how to 'link' my membership number with my smile account. Any ideas?

Thanks

This "linking" should happen automatically, provided that Co-Operative Membership have the same name and address details for you as the bank do. Any co-operative financial services business will be linked to your membership.

Your membership card will also allow you to collect points in Co-operative Group stores, along with MidCounties Co-operative Society and Anglia Co-Operative (includes Westgate department Stores). If your local co-operative society stores are owned by a different co-operative society that is not Group, Anglia or Midcounties you won't be able to use the card there.

Points can also be collected at https://www.coopelectricalshop.co.uk