Avoid First Direct - They are gonna charge all customers £10!

CopperPlate_2

:rotfl: :rotfl: :rotfl:

angelatgraceland

CopperPlate wrote:

People who run their current account properly and don't go overdrawn don't make the bank money and actually end up costing the bank in the long run to provide the service.

CP

I disagree with this part though-when our salaries go into the account each month and more or less just sit there, they are indeed making money out of us. Now way are we costing them anything. We do run our accounts properly and never need to pay fess but no way are WE COSTING Them anything. Then there are our savings accounts which they are also making money on-we are NOT costing them because we run accounts properly. Thats daft.

M_Thomson

angelatgraceland wrote:

I disagree with this part though-when our salaries go into the account each month and more or less just sit there, they are indeed making money out of us. Now way are we costing them anything. We do run our accounts properly and never need to pay fess but no way are WE COSTING Them anything. Then there are our savings accounts which they are also making money on-we are NOT costing them because we run accounts properly. Thats daft.

It isn't daft. Do you think that a bank makes more money from someone who is £2000 in credit or £2000 overdrawn? Current accounts are used as loss leaders to draw customers in so they will purchase more products from a bank. People who stay in credit cost banks money due to admin costs, processing fees on debit cards, cheques etc. People who borrow, pay interest at a higher rate making banks more money.

Jimble

As a hugely satisfied Customer of FD for over 10 years, I will be keeping a very close eye on this.
Does anyone have a list of banks with UK call centres as I don't want to transfer to one (if I have to) with outsourced call centres.

dhug

Thank you to the posters apparently from first direct for the information I will be very interested to see what the details are when we get our letters in September.
I am very satisfied FD cusomer and dont want to move anywhere else even if I could get a better rate of interest simply because I value customer service, it may seem odd to some who spend their entire life bank hopping in order to get a few more pounds that anyone would stay with a Bank because of customer service but I am of the opnion that in this age of press 1 for this and press 2 for that I would rather speak to a real person otherwise I just end up screaming down the phone to a machine to let me speak to a human being:rotfl:

CopperPlate_2

angelatgraceland wrote:

I disagree with this part though-when our salaries go into the account each month and more or less just sit there, they are indeed making money out of us. Now way are we costing them anything. We do run our accounts properly and never need to pay fess but no way are WE COSTING Them anything. Then there are our savings accounts which they are also making money on-we are NOT costing them because we run accounts properly. Thats daft.

So you don't pay for anything with your salary throughout the month then? The money just sits unused all month? How very lucky you must be. I'm usually down to single digits (pence that is :rotfl:)

The bank produces chequebooks, cards, arranges an overdraft (sometimes), pays staff to answer your phone calls or reply to e-messages, just to name a few. How much are they paying you in interest per month on, say, £2k? £6 odd after tax? No withdrawals or DD/SO and the full £2k left for the whole month? I was only referring to current accounts - not savings - as I think I had put in my original post.

Spendless

dhug wrote:

Thank you to the posters apparently from first direct for the information I will be very interested to see what the details are when we get our letters in September.
I am very satisfied FD cusomer and dont want to move anywhere else even if I could get a better rate of interest simply because I value customer service, it may seem odd to some who spend their entire life bank hopping in order to get a few more pounds that anyone would stay with a Bank because of customer service but I am of the opnion that in this age of press 1 for this and press 2 for that I would rather speak to a real person otherwise I just end up screaming down the phone to a machine to let me speak to a human being:rotfl:

Me too but when people start closing their accounts and ranting about what they think of FD there will be 1 negative call after another and I believe their CS will suffer as a result. For that reason I won't stay to break even. Also when we consider changing our mortgage to something better, I will be losing one of the products I have so I will have to take into account that I may lose extra money by staying with FD for the rest. I am going to start the ball rolling to prepare to jump ship. Very sad it has come to this after 10 years with them.

nbbradshaw

grex9101 wrote:

Crikey, how many bits of chicken do you get on your balance?

:rotfl:

Not even enough for a bargain bucket......:rotfl:

Fitzy29

As first direct is just HSBC in disguise then no doubt they are going to use this arm of their business as a pilot for the bank account charging scheme. HSBC are the worlds largest bank, no doubt gained by pure greed, as such they have the biggest balls to try this charging scheme out!

Also for someone to say a bank makes no money from someone who's in credit, remember every time you use your debit card the bank charges the retailer for that transaction, the bank also lends your money to other customers and as a bonus trades your money on the stock exchange...!!! I can't understand people who say that you cost the bank money if you stay in credit, the banks forget if it wasn't for the people using them and placing money with them then there would be no bank in first place...

CopperPlate_2

The bank will also charge retailers if you use your debit card in your overdraft as well - and charge you interest on the OD? What I am trying to say is that - take a balance of £2000 over a month - this sum will decrease as the month goes on more than likely so the interest at say 5% gross will be less than £6 after tax and will also be less than that as the balance is likely to be ever decreasing. The bank will take your £2000 at day 1 and invest it, but you are constantly withdrawing your "£2000" over the month so the money the bank makes on it will reduce as well. Factor in the costs for providing the service in the first place and the banks will make nothing - or a tiny amount if it makes anything - on CURRENT ACCOUNT holders. Savers are entirely different I'd say as the balances remain fairly static (usually).