Smile.. No more interest on Current accounts.

nilrem_2

I imagine that many like myself will have stopped keeping much cash with Smile (Co-op).
When they first arrived on the scene they were very good paying a decent interest rate even on their current accounts.

However over the last few years the interest they paid was quite pathetic, the last on current accounts being 0.12%, but now even that is going.
I have just had an email announcing removal of the 0.12% interest on the current account replacing it with 0.00% (that is what the letter says LOL).

Bit of a shame really they were very good when they started and I still have a soft spot for them but now there does not seem any real advantage in saving with using them.

inearlygaveup

nilrem wrote: »

Bit of a shame really they were very good when they started and I still have a soft spot for them but now there does not seem any real advantage in saving with using them.

I also have/had a soft spot for them but regrettably left them some time ago.
I have however just signed up for their Co-operative Energy

Bigal_2

nilrem wrote: »

I imagine that many like myself will have stopped keeping much cash with Smile (Co-op).
When they first arrived on the scene they were very good paying a decent interest rate even on their current accounts.

However over the last few years the interest they paid was quite pathetic, the last on current accounts being 0.12%, but now even that is going.
I have just had an email announcing removal of the 0.12% interest on the current account replacing it with 0.00% (that is what the letter says LOL).

Bit of a shame really they were very good when they started and I still have a soft spot for them but now there does not seem any real advantage in saving with using them.

In addition, they have also increased the overdraft interest rate.

jimjames

When internet only banking came out I went with Cahoot instead of Smile and wasn't sure if I had made the right decision. 12 years on Cahoot aren't opening new accounts but are still paying 1% on the current accounts so it has worked out ok.

zzzt

This is rubbish! Are all banks gonna get rid of interest on credit? And what next? Charging us for having accounts too?

Smile has been my bank account over 8 years now, and I haven't had problems, but increasing the interest on overdrafts and scrapping the interest on credit balances just seems like a punishment.

Ultrasonic

nilrem wrote: »

I have just had an email announcing removal of the 0.12% interest on the current account replacing it with 0.00% (that is what the letter says LOL).

Unless you have a very large current account balance the difference between getting virtually no interest and getting exactly zero interest is so small it barely seems worth worrying about. If you had a constant balance of £1000 you'd be a grand total of 96p per year worse off after (basic rate) tax.

nilrem_2

zzzt wrote: »

This is rubbish! Are all banks gonna get rid of interest on credit? And what next? Charging us for having accounts too?

Smile has been my bank account over 8 years now, and I haven't had problems, but increasing the interest on overdrafts and scrapping the interest on credit balances just seems like a punishment.

I took most of my cash away from them a few years ago when they started paying rubbish interest rates.

No advantage now over on-line access with a high street bank account.

Thrugelmir

zzzt wrote: »

Charging us for having accounts too?

The UK is in the minority. In general around the world banks charge flat fees for current accounts.

Probably fairer as makes other products less expensive. As there's no such thing as free banking.

JustKeepSwimming_2

Still a fan of smile here though, so I shall be sticking with them. Some of their overdraft charges seem high - do they compare with other banks? Thankfully I've managed to not need an overdraft for years using the Flying By The Seat Of My Pants approach.

Nonethericher

Hi all,

I was also quite disappointed with the email confirming the scrapping on interest for current account holders. I've been a happy Smile customer for around 10 years and love all things Co-Op, but I'm having to look at alternatives to switch to now, as the situation is dire for all, not just banks and yes, every penny counts!

Is this part of a generalised move by banks to scrap interest on credit for current accounts? I hope it's only a short-term measure

jonmcclelland

The overdraft interest charges are going in line with the Co-op as their current accounts are increasing as well. I can imagine it's just a way to transition them closer together. Co-Op dont pay interest on their in-credit balances either so this makes sense.