bank or building society?

wendy_ann1983

With finances the way they are, which is safer; a bank or building society, or are they both equally risky?

I'm currently with Barclays who it seems are in trouble and Abbey who are just trouble. I was thinking of swapping to Nationwide as I haven't seen anything bad in the news (though i might have missed it) and customer service seems quite good.

greyster

If you are just concerned about customer service then try [STRIKE]Premier[/STRIKE] First Direct. It's own by HSBC - who aren't in trouble.

I've just switched from Barclays to A&L, mainly for the cash benefit as I communicate with a bank roughly once a year so customer service isn't too important to me.

wendy_ann1983

Prefer the idea of somewhere with branch as I hate dealing with people over the phone if I have a problem as I normally get wound up, whereas in branch I stay calmer (i'm not an angry person, i just get wound up talking to people who make no attempt to understand what i'm saying).

Inactive

greyster wrote: »

If you are just concerned about customer service then try Premier Direct. It's own by HSBC - who aren't in trouble.

Do you mean First Direct?

rb10

As far as the protection your accounts have, then whether it's a bank or building society there's no difference. Despite the fact that Barclays have been struggling over the past few days, the first £50k in savings accounts + £48k in investments is protected, as everywhere.

But customer service is obviously very dependant on the person. With regards to Abbey, there are threads on here with people who are very disappointed with the service; whereas others are more than happy. If you don't like what you get from Barclays/Abbey, try elsewhere. But I don't think a bank/building society makes any difference. Although building societies are supposedly run for the customers rather than shareholders, Nationwide's rates haven't been particularly competitive recently.

Aegis

Inactive wrote: »

Do you mean First Direct?

Could be either, though Premier Direct is only available to HSBC Premier account holders, meaning they need to have £50k or a £250k mortgage with the bank.

First Direct sounds a little more likely here.

Mike1989

wendy_ann1983 wrote: »

With finances the way they are, which is safer; a bank or building society, or are they both equally risky?

I'm currently with Barclays who it seems are in trouble and Abbey who are just trouble. I was thinking of swapping to Nationwide as I haven't seen anything bad in the news (though i might have missed it) and customer service seems quite good.

Equal risk really. Some building societies such as Barnsley have had to merge with bigger societies because they had been exposed due to that Iceland situation. Admitted Barclays shares have dropped for 7 or 8 days consecutively but if it is a current account then there is no real need to worry about the risk, unless you keep 50k or above in it each month.

If its your savings up to 50k is guaranteed, but it is highly unlikely Barclays or any major bank will be let fail. If they did the economy would be in big trouble. So unless you are not happy with Barclays and Abbeys service that they are offering you, then there is no real need to move. Nationwide do have good customer service but that depends on who you talk to. Same with Abbey and Barclays customers. Some love them, some hate them. So unless there is something that has happened at Barclays or Abbey, then your as good staying put.

But Nationwide are as good as anyone to put your current account and savings with. My sister switched from Abbey after poor customer service and it didn't seem to take that long, and when there was a problem with her card she got through to a UK call centre and they were nice, polite, and sorted out her problem. So as good as any, but by that same notion, any major bank or big building society are as safe as each other.

greyster

sorry i meant first direct.

Remember as a First direct customer, you can bank at HSBC branches.

ShelfStacker_3

greyster wrote: »

sorry i meant first direct.

Remember as a First direct customer, you can bank at HSBC branches.

Well, "bank" as in deposit and take out money and deposit cheques. For anything else you have to go through FD's call centres. Which isn't bad - all UK only, lovely people, and they win awards regularly.

/just took the plunge and loving FD already

97trophy

wendy_ann1983 wrote: »

, or are they both equally risky?
I'm currently with Barclays who it seems are in trouble and Abbey who are just trouble.
.

Barclays will survive in one form or another. They may be nationalised by the Govt but you are not going to lose any money you have with them.

rb10

Mike1989 wrote: »

But Nationwide are as good as anyone to put your current account and savings with.

I've never had any problems with Nationwide's customer service, other than that my local branch is way too small. The only gripe with their current account is that is doesn't pay any interest (or, if you pay in £1500/month, a miserable 0.5%). There are much better rates.