Interest + “Introduction Bonus”

James_Bond_007_2

Hello

What an unexpected pleasure you being here.

As you’re here may be we could get down to business, as soon as possible, as I have an urgent meeting with “Q” in ten minutes and I really need a drink (Martini, shaken not stirred) before that.

Why do Banks, on saving accounts sometimes have Interest = (Interest + “Introduction Bonus”) that are variable. Why can’t the Banks just have an amount of interest (variable) for a type of account?

Loughton_Monkey

Because the Introductory Bonus is payable only for [usually] 12 months, after which it drops down to the underlying variable rate.

So if it was a single rate, then if it was 0.5%, who would open such an account? If it was 3%, then they would have to pay this for the 'idiots' who forget the 12 months and just leave it there earning 0.5% instead of moving it to a new home.

Since every 100 new savers always includes, say, 30 'idiots', it's well worth their while.

Some call it 'Marketing'.

deadpeasant

It's called greed and contempt for the public. Surely you remember Auric Goldfinger?