Campaign to get better rates for our current accounts and mortgages

lordjoesnow

Hi, i have recently set up a campaign to try and get the banks to offer us better rates for loans and mortgages by proposing everyone to switch bank accounts. This will then make banks more competitive and offer their existing customers greater deals rather than just competing for newer customers (i.e. the students). Banks borrow from the BoE for 0.5% and lend from 6.7% to 11% here in the UK. This is what pays for for their massive bonuses.

more information can be found on facebook. Just search 'The Great Bank Switch'

I'm looking for any advice for my campaign and some discussion as to whether this can actually work. Thank you.

JuicyJesus

1) Banks are allowed to make a profit. "Buy low sell high" is what businesses run on, and is essentially what banks do with money. Bonuses are irrelevant. They can pay what they like to staff, being private businesses.
2) Most banks do not now pay credit interest on current accounts because, by and large, the cost of maintaining and servicing these accounts makes them a loss-maker anyway. Any interest they pay, given the BOE base rate being ridiculously low at present, would almost certainly make them more of a loss. They do not have to make a loss. The few banks that pay any interest or incentive for having a current account are either considering scrapping this or have scrapped it.
3) Mortgage rates are already low because the BOE base rate is low. And once again, banks are allowed to make a profit.

BoGoF

My advice - at least know what you're talking about. Banks do not borrow money at 0.5%.

ses6jwg

Please tell me this a wind up?

If not, please go away, I'm sick of this bank-bashing bullsh!t. It's so 2008.

opinions4u

lordjoesnow wrote: »

Hi, i have recently set up a campaign to try and get the banks to offer us better rates for loans and mortgages by proposing everyone to switch bank accounts.

Well make sure you switch to banks offering you the best terms then.

This will then make banks more competitive and offer their existing customers greater deals rather than just competing for newer customers (i.e. the students).

Or maybe, because margins are waifer thin, you'll just stop banks from trying to be competitive and encourage them to start charging for all services. £1 for an ATM withdrawal. 50p for a direct debit. £3 for a new debit card. £10 for a replacement cheque book.

Banks borrow from the BoE for 0.5% and lend from 6.7% to 11% here in the UK. This is what pays for for their massive bonuses.

So when I save my money at 3% in my cash ISA, what rate is the bank borrowing at? When I pay 0.99% in my mortgage, what rate is the bank lending at?

more information can be found on facebook. Just search 'The Great Bank Switch'

Well it beats the hell out of strange ladies trying to be friends with me I suppose. Then again ...

I'm looking for any advice for my campaign and some discussion as to whether this can actually work. Thank you.

Your biggest barrier is the combined apathy of the great British public. They can't be bothered. This site and all who sail in her advocates getting the best deal. It's easy to do. The barriers to switching banks are, in reality, few and far between. But those who care enough to act represent 10% of the population.

We forget in this country that many elements of banking we accept as free would be charged for in every other country on the planet.

Your campaign is already being waged in the Wednesday tabloids, on this site and others. I really don't think a little more coverage on Mingebook, liked by 93 spotty students, will make any difference.

2sides2everystory

some_messianic_denigrator wrote:

"Buy low sell high" is what businesses run on

"Buy low sell high" is what here now / gone tomorrow businesses run on.

What is this twaddle they are apparently teaching weak brains on business courses thesedays?

Wyndham

I'm confused. How will us all changing bank accounts send a message? They would lose some, and get some more back, and everyone would be confused for awhile.... ?

Sceptic001

2sides2everystory wrote: »

"Buy low sell high" is what here now / gone tomorrow businesses run on.

What is this twaddle they are apparently teaching weak brains on business courses thesedays?

In contrast, those businesses which buy high and sell low are thriving, I suppose? :rotfl:

Regarding OP's campaign, I suspect it is doomed to failure. My advice to anyone who thinks banks are making too much profit is to buy bank shares.

pinkdalek

lordjoesnow wrote: »

Banks borrow from the BoE for 0.5% and lend from 6.7% to 11% here in the UK. This is what pays for for their massive bonuses.

QUOTE]

My advice would be go and work for a high street bank as all the staff there are so obviously on massive bonuses, drive high spec cars and are so overpaid, (not bad considering you could get attacked by a raider with a gun/knife) or if you think you can do better set one up yourself, afterall you seem to have such a great knowledge of what rates bank charge? Where do you get your facts from, The Daily Mail?

antrobus

lordjoesnow wrote: »

... Banks borrow from the BoE for 0.5%....

Well no they don't really.

Banks borrow money from Peter and lend it to Paul. If they were to pay depositor Peter a better rate on his savings, then they'd have to charge lender Paul more on his loan.

meer53

I work for a bank, can you please let me know where my massive bonus is please ? I don't seem to have got it yet.

Banks are businesses, they're not in it to make a loss, change banks if you don't like what they're offering, it's a no brainer really.