Current Account less secure than savings?

Danny_k75

Hi all,

I was told by a cashier in Lloyds that I was keeping too much money in my current account and that I should transfer it to my savings account.

I explained that the savings account has a very low interest rate and that my current account had a very good interest rate.
She said that the current account was less secure than my savings account but couldn't explain why.

Could anyone kindly shed some light on this issue?

Thanks,
Danny

Old_Wrinkly

Yes. An incompetent member of staff.

poppy_f1

prob in a roundabout way trying to sell you a savings account

rb10

There is, however, truth in the fact that the vast majority of fraud occurs on current accounts.

So if you have a low balance in your current account, you don't leave yourself quite as wide open to the possibility of someone else helping themselves to all your money.

Danny_k75

Thanks for the replies.

If someone does somehow get access to my current account I won't be too bothered as long as the bank repays me any stolen money.
But this is where I'm unsure as I'm not sure if they would blame me for keeping too much money in the account?

rb10

I am sure that you would get the money back, the only issue is that it could take them some weeks to complete the investigations.

Is there any reason why you want to keep it in your current account, when you can get 2.8% with instant access from the AA?

scottishblondie

Probably because if he has >5k in a Lloyds Vantage he'll be getting 4%.

I suppose a current account could be less secure because you're out and about with your card, it could be stolen etc, or there is always the possibility of online fraud if you use your debit card on the internet. I don't worry about it since the cards for the current accounts I have lots of money in are never used and never leave the house!

I don't think they can come back and say they won't refund stolen money because you had too much in your account tho!

Danny_k75

Thanks everyone.

I went to the bank and queried them about this.

They said the security risk was that I could be that I have a card for my current account whereas my savings account doesn't have a card.

But they basically said this is only really a problem if you use your debit card a lot, which I don't.

Interestingly enough my interest rate for my current account is better than any instant access savings account I've seen!

vaporate

If your current account has a better rate than ur savings rate, then something has gone wrong lol.

If you are interested in a savings account take a look around on the web.

DrScotsman

vaporate wrote: »

If your current account has a better rate than ur savings rate, then something has gone wrong lol.

5% fixed for a year. It's hard to find ANYTHING that beats this let alone instant access.

Although a lot of people would say something has gone wrong if you bank with A&L or Santander, so I guess your point stands

(And yes I know the OP banks with Lloyds)

Old_Wrinkly

rb10 wrote: »

There is, however, truth in the fact that the vast majority of fraud occurs on current accounts.

Maybe. But there are probably a lot more current accounts than savings accounts.