Sick to death of interest chasing with same banks

nilrem_2

treecity wrote: »

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.

I agree with what you are saying, I had the same thing with Natwest esaver, they offered new accounts a bonus and the only way for an existing saver could get it was to open yet another account, hence I have 2 esavers one with £7 in it and unused, it's such a lot of hassle isn't it!

As you say they fall over backwards to attract new customers and business but once they have you they don't seem to care less yet it often results in them losing the new accounts that they made effort to attract in the first place, seems ludicrous to me, when I run my own business we made sure that we looked after our loyal customers as well as trying to attract new ones.:)

Primrose

I do agree that this is becoming a major problem, especially for retired people who rely on interest from savings to top up their pensions. The reality is that there can't be much "new money". What people are doing is just removing the money in their savings accounts from one provider to another to chase a better rate. The new money is coming from new savings which people are making on a gradual basis by saving from their monthly earnings, or bulk sums arising from house sales, etc. If one was to cost out the time spent in researching higher interest rates at a certain rate per hour, the reality would probably be that the additional interest rate earned might hardly be worth it. But when the recession squeezes, unfortunately many people have no other option and the smaller range of institutions available because of recent mergers and the compensation limit makes it an even more complicated task. Wouldn't it be nice to have a totally new ethical financial institutuion come into being who really did treat customers in a fair way, and also rewarded them for the loyalty?

baby_boomer

treecity wrote: »

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.

I just looked at contacting Martin Lewis directly

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?

There's nothing you can do.

In fact the whole process is what keeps MSE going. If they treated us all fairly, and there was no point switching then Martin would have less subscribers & revenue.

Why should he complain on your behalf?

Primrose wrote: »

Wouldn't it be nice to have a totally new ethical financial institutuion come into being who really did treat customers in a fair way, and also rewarded them for the loyalty?

No chance.

MSE and the internet in general make such an idea utterly absurd.

And members of this site would be the main losers .

Please get a grip. My average interest rate is currently about 4% above base rate. Why would I, and others, want that to change?

Most people here want to chase the best rates as long as they know that they are benefiting by doing so - which is the case under the current set up.

Ste_C

People who chase interest rates are idiots and need to get out more.

Chasing an half or 1% is pointless. So you might make an extra £10-20 or so a year - whoodee!!!!indoo.

And if you've got enough saved up to earn more than that then you need to stop being tighter than a camels backside and spend some of it.

noh

Ste_C wrote: »

People who chase interest rates are idiots and need to get out more.

Chasing an half or 1% is pointless. So you might make an extra £10-20 or so a year - whoodee!!!!indoo.

And if you've got enough saved up to earn more than that then you need to stop being tighter than a camels backside and spend some of it.

You, of course, are entitled to your opinion even though it is wrong:D

john_s_2

Ste_C wrote: »

People who chase interest rates are idiots and need to get out more.

Chasing an half or 1% is pointless. So you might make an extra £10-20 or so a year - whoodee!!!!indoo.

And if you've got enough saved up to earn more than that then you need to stop being tighter than a camels backside and spend some of it.

Rather than just insulting people can you explain why it's wrong to save money?

As an example I am saving money towards replacing our car in about two years' time. To replace like with like I think I'll need about £6k. So I have considerably more than £2000 saved already (going by your figures this is the ceiling you prescribe as a maximum amount that you should have in savings).

So I am going to spend it. Just not yet. In the meantime the bank can use my money to lend to other people who want to borrow it for any reason (and I wouldn't presume to say they're wrong to borrow money).

I don't see what's wrong with that. However, I'd be happy to be proved wrong.

CLAPTON

Ste_C wrote: »

People who chase interest rates are idiots and need to get out more.

Chasing an half or 1% is pointless. So you might make an extra £10-20 or so a year - whoodee!!!!indoo.

And if you've got enough saved up to earn more than that then you need to stop being tighter than a camels backside and spend some of it.

In many cases interest rates have dropped to less than 1% e.g. many of Nationwide's products now pay 0.5% ...

so if you can get 3.5% instead on (say) 5k that's a useful 150 per annum.. Maybe peanuts to you but some would see this as worth the effort.

RayWolfe

Milarky wrote: »

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%.

So what you are saying is that this sort of thing only started recently. I, foolishly, thought that it started in the mid eighties with the famous "Liquid Gold" account, but, hey, what do I know?:p

Jonbvn

Ste_C wrote: »

People who chase interest rates are idiots and need to get out more.

Chasing an half or 1% is pointless. So you might make an extra £10-20 or so a year - whoodee!!!!indoo.

Well between myself & OH we have about £200k in savings and investments. Therefore, I would be most grateful if you could send us a pointless £2k (1%).

withnell

Jonbvn wrote: »

Well between myself & OH we have about £200k in savings and investments. Therefore, I would be most grateful if you could send us a pointless £2k (1%).

Well you're obviously just being tight!!!