Interest earning accounts for clubs.

jonesMUFCforever

BML wrote: »

I am finding it difficult to accept many of these answers and can only believe that they must be posted by those who work with in the Banking world.
I see excessive profits being extracted by banks and even more excessive salaries and bonuses being paid to Bankers while normal folk are being ripped off by what are no more than robber barons.
When I last visited my Bank the young lady I spoke to told me that her and her husband are paying £1,000.00 a month rent and despite them both being in employment they are unable to get a mortgage. What is happening to the country?

By all means have a rant - then sit down chill out and say after me I do not work for nothing so my bank should not either.
You do not have to pay a penny for your banking in this country - google other countries and see how lucky we are!
If you use the bank's money then I'm sorry you have to abide by their rules.

Mikeyorks

BML wrote: »

I am finding it difficult to accept many of these answers and can only believe that they must be posted by those who work with in the Banking world.

Don't you just love people who post a question and then decide they knew the answer all along - because they dislike the answers?

Post #4 is spot on - whether you like it or not.

Club / Treasurer accounts etc are no different to Probate / Exor accounts. You get minimum interest (in the latter case you're lucky to get any at all) ...... because of the higher than average friction costs in maintaining the account.

I don't - nor have I ever - worked for a Bank. But I have had a Treasurer account in the past and also an Exor account.

ChiefGrasscutter

BML wrote: »

I am finding it difficult to accept many of these answers and can only believe that they must be posted by those who work with in the Banking world.

Not sure of the occupations of the other posters.....
But I'm a professional Chartered Electrical Engineer, my background is from the oil, gas and power generation sectors in multinational operating companies.

As a previous poster alluded to(#12), in many other countries everyone has to pay an annual fee for having a bank account....... in other words you the customer have to pay the bank an annual fee for them providing the service to you of running a bank account for you regardless of what sort of account it is.
While in other countries I wouldn't go into an unauthorised overdraft if I was you. It's a criminal offense and UK nationals who treat their accounts when over there in the same cavalier way they seem to in the UK are treated to a rather unpleasant surprise.

tagq2

jonesMUFCforever wrote: »

You do not have to pay a penny for your banking in this country - google other countries and see how lucky we are!

Like the NHS, we only don't pay "at the point of service" - the nearest being that all retail prices are slightly higher and wages very slightly lower to take account of card discount and business banking transfer fees. But the NHS has been shown repeatedly to provide a thoroughly efficient and inclusive service for the patients, while state-interfered banking tends to tweak things in favour of the banks.

The most obvious way we've paid for banking recently is through bailouts. But the most insidious way is through the way your bank has the privilege to interact with the Bank of England. In particular, it's popular to argue that a bank can reasonably pay interest only around the BoE base rate. I'm not sure what leads to this conclusion. A deposit of £1 by you becomes a government grant to a bank to borrow from the BoE some multiple of £1 at the base rate, where the borrowing will take the form of mere promises from the government rather than actual HM Treasury money.

Imagine how much more your money might be worth - not least because of reduced inflationary effects - if we didn't pay our banks for their services by granting them special privileges in law.

BML

“You do not have to pay a penny for your banking in this country”
Rubbish, my current account normally has a couple of thousand in it for which I receive no interest but I bet the Bank makes it work for them.

"You get minimum interest (in the latter case you're lucky to get any at all) ...... because of the higher than average friction costs in maintaining the account.”
Rubbish, there are no more friction costs in running the club deposit account than there are in running a personal deposit account for which some banks and Building Societies pay quite reasonable interest.

opinions4u

BML wrote: »

I am finding it difficult to accept many of these answers

Most if not all of what has been posted is factual and accurate. You asked a question, you got clear answers and recommendations of alternatives.

If you don't like the 1.60% account I pointed you torwards, that's your choice. But it's 3 or 4 times what you're earning at the moment so what's so difficult to accept about it?

and can only believe that they must be posted by those who work with in the Banking world.

I spent many years working in banking. I'm sorry if that offends you in some way. Getting an understanding of why things are the way they are from somebody who was once inside the industry can provide balance. Oddly, most if not all of the posters don't appear to work within banking.

I see excessive profits being extracted by banks

Well they're a hell of a lot less profitable than they were 4 years ago. Indeed, many seem to be losing large chunks of cash at the moment.

and even more excessive salaries and bonuses being paid to Bankers while normal folk are being ripped off by what are no more than robber barons.

Nice soundbite. While not for a second defending executive pay and bonuses, do you have anything that suggests "top" bankers earn more than the executives of similar sized firms that aren't banks?

When I last visited my Bank the young lady I spoke to told me that her and her husband are paying £1,000.00 a month rent and despite them both being in employment they are unable to get a mortgage. What is happening to the country?

Perhaps if they cut the rate on your club account they could afford to pay branch staff a little bit more.

my current account normally has a couple of thousand in it for which I receive no interest but I bet the Bank makes it work for them.

So what's stopping you moving that money to an account that pays you interest, or pays you a fiver a month?

jennifernil

BML wrote: »

I am a Secretary to a small angling club which has about £10,000.00 in its bank account. We get less than 0.5% interest while I see individual bank accounts getting much more.

Can anyone tell me why Banks and Building Societies behave like this and more to the point can anyone tell me where the club could get a better deal?

I would like to get a better deal too for our Guide Hall account. We have 2 accounts, one we pay stuff from, with cheque book etc, which now pays no interest at all, and another where we save our surplus for repairs and improvements, we have almost £19k in it, and get only 0.75% interest, so inflation is eating away our funds rapidly. There is no chequebook for that account, the money can only be withdrawn via the current account.

Even on our current account we have only 2 direct debits and an average of 2 cheque payments going out per month. Over the year we would deposit a maximum of 35 cheques plus a few cash deposits.

I will look into the Scottish Widows and other ones suggested (thanks for the pointers), but why should our savings not earn the 2.5-3% that I can easily get on my own savings?

We usually only need to take money out of the savings account once a year, to pay our property insurance, otherwise the payments are all inward, by transfer from our current account. If we do have a big bill to pay, we would usually know at least 30 days ahead and be able to plan for it.

jennifernil

Right....have visited the various websites, there is not a lot on offer.

The Scottish Widows 7 day notice deposit account paying 1.6% is as good as it gets as far as I can see, but at over twice the rate we are getting now, it will be better than doing nothing. Telephone access seems relatively straightforward, a little bit of hassle setting it all up initially, but it would be the same with any new account.

So that will be on the agenda for our next meeting!

Mikeyorks

BML wrote: »

Rubbish, there are no more friction costs in running the club deposit account than there are in running a personal deposit account for which some banks and Building Societies pay quite reasonable interest.

I trust you're better at your fishing than you are with your logic.

Otherwise I envisage you sitting around a part old tyre and a filleted shopping trolley on the BBQ!

jennifernil

What you need to remember here is that we are not talking about a current account, but a savings account. One which most likely will have far fewer transactions on it in a year than for example my own savings account would have.

If the account is to be operated by 2 or 3 people, there may be additional initial checks, but not that much more than on a joint savings account. Once that is done, where is the additional work for the bank?

If a club/charity savings account can be operated only via a linked current account, there is not necessarily the need for multiple signatures for withdrawals.....the funds can only go to the club/charity's own current account, which would then require the 2 or more signatures for a withdrawal.

I spent some time last night checking out the interest rates on club/charity/business deposit accounts, and quite frankly they are farcical.