This is a rant

cyclonebri1

when, just when will some legislation to protect savers from the the extortion that banks lay on the average saver???

I'm inscensed by this, a bank I've dealt with exclusively for 30 odd years is offering 6 times the interest it gives me on accessible savings to newcomers, ,

I do know the answers;
shop around, move money etc etc.

But why should I have to weithout warning from "my bank"

This is not for my benefit, I'm a little more financially savvy than to allow this to happen to me, but for ficks sakey, why do they prey on the older non comp savvy folks???????????????????

Jegersmart

I believe it is called "attracting new money"

cyclonebri1

Jegersmart wrote: »

I believe it is called "attracting new money"

I believe it's called "taking the picies"????

exel1966

cyclonebri1 wrote: »

when, just when will some legislation to protect savers from the the extortion that banks lay on the average saver???

I'm inscensed by this, a bank I've dealt with exclusively for 30 odd years is offering 6 times the interest it gives me on accessible savings to newcomers, ,

I do know the answers;
shop around, move money etc etc.

But why should I have to weithout warning from "my bank"

This is not for my benefit, I'm a little more financially savvy than to allow this to happen to me, but for ficks sakey, why do they prey on the older non comp savvy folks???????????????????

Banks are businesses, here to make money, not molly coddle people and their finances. It's the responsibility of the consumer to know what's hot and what's not !

It's a well known fact of life that financial companies reel new customers in with lucrative loss leading accounts to try and entice them into other accounts. Play them at their own game and it's win win !!

Jegersmart

cyclonebri1 wrote: »

I believe it's called "taking the picies"????

What you call it is pretty irrelevant tbh:D The reason why you feel the way you do is in my reply above - feel free to call it what you want though!

jhxmt

For the same reason that a lottery ticket costs £1 but returns less than 30p of that on average.

Because life ain't fair, and people want your money. It's not exactly a Utopian ideal, but to rant and rave about one specific instance of this (banks and their new-customer interest rates) is to ignore every other instance (any time anybody tries to sell you anything ever).

Pendle_Gazza

cyclonebri1 wrote: »

when, just when will some legislation to protect savers from the the extortion that banks lay on the average saver???

It would be nice, but, erm, probably never. That's life. And life's a b*tch.

It's everywhere. Our local golf club has changed from Coke to Pepsi bottles. Cost to them: up to 20p cheaper. Cost to golfer: exactly the same (£1.25). Moral: remember to take your own water/pop.

xrjtg

If everybody received the same rates, then you might expect that rate to be lower than the best currently available. You could view the status quo as an opportunity for people as well informed as yourself to benefit from their knowledge.

atush

I hate Pepsi. I prefer Coke.

I love a good rant ;-)

opinions4u

why do they prey on the older non comp savvy folks

It's nothing to do with age. 90% of the population don't shop round. They chuck their money in and forget about it. They ignore direct mail. They ignore adverts in papers, web sites and on the telly. They ignore their friends telling them. They ignore the rate displayed on their screen. They refuse the "opportunity" to "review" their accounts in branch.

Most providers will simply move these customers from account old A to account sexy new B, if only they asked.

Now, if there was legislation that forced banks to pay the same rate to new and existing customers for similar products, and assuming my 90% figure is right, you'd move from the current position of 3% new account / 0.5% old account to something like 0.75% for everybody. Check out the maths, it's spot on.

If there wasn't legislation in place, and a bank unilaterally followed a policy of payying 0.75% for everybody, they would attract no new money but would leak money out at the other end. The end result is insolvency.

At the end of the day, I think asking people to look after their own money is not an unreasonable expectation for the adult population of the country. If they can't be bothered, then they should expect to receive less than they could have done.

cyclonebri1

Yes, I know but it was the shock of finding that an account I thought was still paying me 3% had infact dropped to 0.5%.
Overlooked on my part but the fact that an incidental phone call to move a substantial amount out of "mybank" for other reasons led them to offer me an account similar to the original one, not exacty a new customer after dealing with for 35 years, but now an ex one.