RBS changes to basic bank account takes away use of link

Wids

I've received an e-mail this morning from RBS advising me that;

"Having reviewed your existing account, we believe our new Basic Account is the current account in our new range that is most similar to your existing account. So, on 25 October 2011, we will change your Key Account to a Basic Account."

What is changing?

The main change to your account relates to withdrawing cash. Once your account has changed, you will only be able to withdraw cash from:

RBS, NatWest or Ulster Bank branded cash machines within the UK or Gibraltar
any RBS or Post Office® branch counter

any cash machine outside the UK and Gibraltar which displays the Visa logo (but the owners of these cash machines may charge a fee) and

retailers that offer cashback to their customers.

You won't be able to use UK cash machines from other banks or providers.

Basically they're moving existing basic account customers onto an account that takes you off the link cash machine network. I've banked with various banks for 20 years and have never been limited as to which cash machine to withdraw from.

I remember there was talk of some banks introducing charges to other bank customers for withdrawing from their machines and they eventually dropped their proposals, it seems that RBS has decided to take a different approach and limit it's own customers, no doubt making access to the link network part of a premium fee charging account.

I feel that for a bank that had a large role in making the poor people in this country poorer, for them to make banking conditions worse for us so that they can save some money is shameful.

jen245

Looks like Natwest will go the same way with their Step account then. It makes their basic accounts the same as Lloyds TSB's cash account, only being able to withdraw from Group ATMs

premierfella

I'm surprised it has taken this long for another major bank to follow Lloyds TSB's lead for basic bank accounts. The argument is probably that access to own-group machines is a significant cost saving and that they have large cash machine networks and that this (together with access via retailer cashback and post office counters) means that few basic banking customers are seriously inconvenienced by the restriction.

I suggest voting with your feet - the access argument only really applies to the big 4 plus maybe Santander, Halifax and Nationwide. Banks and building societies outside of those would find it difficult to implement a similar restriction without teaming up with one of these bank ATM networks (with only limited cost benefits to them), thus are less likely to limit access to the full LINK network (e.g. Co-Op, which seems to have mainly positive feedback on the basic banking thread).

opinions4u

If you don't like it, bank elsewhere.

for them to make banking conditions worse for us so that they can save some money is shameful.

But they do lose money on these accounts. And will continue to do so even after the ATM access changes.

book12

I would suggest opening another basic bank account such as Barclays Cash Card Account, Nationwide Cash Account, and Co-op Cashminder.

You can withdraw money from any cash machines.

Alternatively, upgrade your account with RBS.

jalexa

Wids wrote: »

Basically they're moving existing basic account customers onto an account that takes you off the link cash machine network.

I'm not sure that is a huge problem. There is still group ATM access and post offices. And still excellent online banking.

But looking at motives, perhaps they are attempting to increase the differentiation from the classic current account. Perhaps as a prelude to charging for the classic?

jen245

But looking at motives, perhaps they are attempting to increase the differentiation from the classic current account. Perhaps as a prelude to charging for the classic?

RBS/Natwest have just launched a new account range, with the old Current Plus now being called Select, and it is still free (it better stay that way or I'll be leaving!). They have Select Silver and Advantage Gold which are packaged accounts, and the new Basic account replaces old Key/Step accounts.

Basic accounts dont make money, and they are limited to what they can sell to customers with these accounts, so they want more current account holders and less basic account holders, so they can make more money, it makes business sense to do what they are doing, and I think other banks may follow suit

7sefton

All sounds fair to me: if you insist on a basic account that loses money for the Bank (which they ultimately pass on to better customers in the form of less attractive rates) then you deserve to jump through hoops to minimise the cost of running your account. Personally, I'd ban basic account customers from branch counters and person-to-person telephone banking too, a la Nationwide and Halifax respectively.

Wids

The jump ship to another bank idea might work if banks didn't work like utitlity companies and have a tendency to implement each others ideas, personally i've already moved bank once from HBOS since they changed their terms to include a fee for a current account regardless whether you're account is in credit whereas before you would be charged for being overdrawn.

I laughed when i read that people 'insist' on having basic bank accounts, circumstances dictate what bank account you can access.

For disabled people in particular whose income category could dictate that they have basic accounts, this will make a huge difference if local atms don't happen to be on their network.

Besides having a bank account is necessary to function these days, almost all wages or government allowances are paid directly into people's bank accounts.

7sefton

Wids wrote: »

The jump ship to another bank idea might work if banks didn't work like utitlity companies and have a tendency to implement each others ideas, personally i've already moved bank once from HBOS since they changed their terms to include a fee for a current account regardless whether you're account is in credit whereas before you would be charged for being overdrawn.

I laughed when i read that people 'insist' on having basic bank accounts, circumstances dictate what bank account you can access.

For disabled people in particular whose income category could dictate that they have basic accounts, this will make a huge difference if local atms don't happen to be on their network.

Besides having a bank account is necessary to function these days, almost all wages or government allowances are paid directly into people's bank accounts.

Well it's simple, disabled people should choose the bank with an accessible ATM nearest to them.

And I suspect you could trace most of the reasons why people cannot have a full bank account back to poor personal behaviour: bankrupt in the past, uncreditworthy due to previous failures to budget, on benefits, etc.

Also, I'm confused why you 'jumped ship' from HBOS due to charges for in-credit current accounts... their premium 'Ultimate' reward account charges a monthly fee, but all others are free if kept it credit AFAIK.

jen245

Wids wrote: »

The jump ship to another bank idea might work if banks didn't work like utitlity companies and have a tendency to implement each others ideas, personally i've already moved bank once from HBOS since they changed their terms to include a fee for a current account regardless whether you're account is in credit whereas before you would be charged for being overdrawn.

Really? What account is that then? My Halifax account pays me £5 per month, and I don't pay them anything