Sick to death of interest chasing with same banks

treecity

I really am getting fed up with closing and opening new accounts with the same banks and building societies just to get the new rates of interest they offer "new" customer's whilst they let the loyal customers rates plummit even though they have the same accounts.

Classic example is Tesco at the moment. I am having to close my internet account just to open a new one and get the improved bonus rate and, therefore, an extra 0.25% gross on what I am currently getting.

I just looked at contacting Martin Lewis directly to see if he could help fight the cause but it seems he can't be contacted directly.

In a world where the carbon footprint is becoming so relevant, it seems crazy to create a paper trail, lots of man hours for banks and their customers when a simple ethical stance from the banks could make life one heck of a lot easier. I know this sounds like a perfect world but the current way of operating numerous savings accounts is farcical.

I guess the point of this thread is that I wonder if there is anything we can actually do about this? Can we form some sort of pressure group so we can take the matter further?

jem16

treecity wrote: »

Classic example is Tesco at the moment. I am having to close my internet account just to open a new one and get the improved bonus rate and, therefore, an extra 0.25% gross on what I am currently getting.

Not now apparenlty. At least two people have reported receiving letters from tesco informing them of an increase in their bonus as a thanks for their loyalty.


http://forums.moneysavingexpert.com/showthread.html?t=1940849&highlight=tesco

Milarky

The general problem with doing this is that higher rates would no longer be available either - as every provider surged towards an average rate offering. The system is complicated enough as it stands. And, if truth be told, it is the government which is promoting short-changing of depositors through the fiction of interest rates at 0.5%.

The general solution to your dilemma is to take out a fixed rate- I'd suggest 2 years- and then sit back and let the world worry about the day-to-day stuff.

treecity

jem16 wrote: »

Not now apparenlty. At least two people have reported receiving letters from tesco informing them of an increase in their bonus as a thanks for their loyalty.


http://forums.moneysavingexpert.com/showthread.html?t=1940849&highlight=tesco

Yes but not quite as great as it sounds. I phoned them this morning based on what I had read in that thread and this loyalty is dependent on when your bonus period runs out. As mine runs out in December they do not offer me the same as those whose bonus runs out in November. Therefore, I have to close my account and open a new one.

Just look at the likes of Bradford & Bingley or Alliance & Leicester as classic examples... eSavings issue 7 and Online Saver 5.

I have 4 A&L accounts, 3 with zero balance and one with savings. This is due to having to keep opening new accounts to keep up with interest rate changes.

treecity

Milarky wrote: »

The general solution to your dilemma is to take out a fixed rate- I'd suggest 2 years- and then sit back and let the world worry about the day-to-day stuff.

Yes, you could be right but there are complications here also as most are not instant access etc.

I do appreciate it's a complicated situation but it is just so frustrating and time consuming to keep on top of it all and I know many others are equally as frustrated too.

Loco

if you have 25k to spare ( ) you could save yourself the hassle of chasing rates by using Investec`s top 5 tracker. I think Saga had one earlier too (but with 1k minimum).....

jem16

treecity wrote: »

Therefore, I have to close my account and open a new one.

Yes I did exactly that with my Tesco account - took all of 8 days and I now have the new rate.

At least Tesco are allowing you to do that - others won't.

treecity

jem16 wrote: »

Yes I did exactly that with my Tesco account - took all of 8 days and I now have the new rate.

At least Tesco are allowing you to do that - others won't.

You say "took all of 8 days" but why should we have to keep doing this at all? That is the point of this thread, it's about time banks and building societies just put rates up for existing customers like they used to. Why should I have to close an account and open exactly the same one again, fill in forms online, send in paperwork etc? It's crazy.

treecity

Loco wrote: »

if you have 25k to spare ( ) you could save yourself the hassle of chasing rates by using Investec`s top 5 tracker. I think Saga had one earlier too (but with 1k minimum).....

Agreed, this is a smart account and wish there were more of them!

jem16

treecity wrote: »

You say "took all of 8 days" but why should we have to keep doing this at all? That is the point of this thread, it's about time banks and building societies just put rates up for existing customers like they used to. Why should I have to close an account and open exactly the same one again, fill in forms online, send in paperwork etc? It's crazy.

The only reason that banks are offering new higher rates is to attract new customers which is the same in every business.

If they had to offer the same rate to existing customers as well you can be guaranteed that the rates would be lower all round.

treecity

jem16 wrote: »

The only reason that banks are offering new higher rates is to attract new customers which is the same in every business.

If they had to offer the same rate to existing customers as well you can be guaranteed that the rates would be lower all round.

If Tesco and others are offering higher rates to attract new customers, why are they allowing their existing customers to open those same accounts as well? To me, they are just moving the goal posts regularly and catching out those who are not on the ball.

Also, it's not the same in every business, that's just a sweeping statement you're making there.

Some businesses, even though they are diminishing, still have high ethics and treat their loyal customers with some respect.