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why don't the bigger banks offer better rates?

Hi,
I always wondered why banks like Barclays/HSBC don't offer rates like 3% instant access etc Is this simply because they don't need too? Not sure how the banking system works

Comments

  • malik999
    malik999 Posts: 376 Forumite
    edited 7 June 2011 at 2:27PM
    Yes, you're right they don't need to. We could say the same about any company. Why dont companyx sell/offer that product for £x instead of £x. Banks are businesses
  • mania112
    mania112 Posts: 1,981 Forumite
    Part of the Furniture Combo Breaker
    Hi,
    I always wondered why banks like Barclays/HSBC don't offer rates like 3% instant access etc Is this simply because they don't need too? Not sure how the banking system works


    yeah, they don't need to.

    Plus these types of accounts are small fry for them.
  • Doshwaster
    Doshwaster Posts: 6,398 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    People are more likely to get divorced than change their current account. So when a major bank has got you as a customer they don't feel as if they need to do much work to keep you.

    The smaller banks on the other hand have to offer the higher rates to try to tempt people away.
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