difference between smile and co-op bank account ?

dada44

wondering what the difference is between these two ? they both are part of the co-operative group, so i don't understand why they have given us 2 choices?

also, does anyone go for the paid savings accounts? the free ones look good enough, unless you want insurance.

innovate

smile is internet only, coop has some branches, too. If you google, you will find more info.

Not sure what you mean by "......the paid savings accounts? the free ones look good enough, unless you want insurance...." - can you clarify?

Though the smile and coop interest rates for savings are even more pants than the better but increasingly mediocre rates you can find elsewhere.

You would never pay for a savings account, and regarding insurance, the only "insurance" you'd want with a savings account is the £85K FSCS guarantee. I might misunderstand your question though.

Voyager2002

I think the OP's question about 'paid' accounts relates to the premium current accounts, which come with a monthly fee and include a range of benefits including different kinds of "free" insurance. You have to read the description carefully and decide whether these extras are things for which you would willingly pay money.

innovate

ah right, that could make sense!. When I read "savings account", I usually assume it's a savings account....

Agree, the current accounts that come at a charge need to be taken with a large pinch of salt since you might be able to get the benefits a lot more competitively elsewhere. But I keep seeing the odd post from people who swear by the value of such accounts.

I have had (and still have) many current accounts. The only one with a fee that I have ever had is the Santander 123 - - because it pays me about 5 times as much in cashback and interest than what it costs.

dada44

yes thankyou,

i am referring to these paid accounts http://www.co-operativebank.co.uk/servlet/Satellite/1193206368227,CFSweb/Page/Bank-CurrentAccounts

i have googled the difference but dont seem to find much, except the branches part. i was wondering if perhaps there might be a different level of service or what not

-maybe in terms of their internet banking layout even

the interests rates are low on these, yes, but unless you have a huge amount of money, i don't think it's going to make a difference. but at least you will know that your money is in hands of a bank that is slightly more geared towards your own interests than others

opinions4u

Smile was launched to grow market share by attracting new customers to the bank.

Focus on service, rate and technologically advanced and the customers did indeed come.

So Co-op grew their business under two brands instead of one.

Then they realised that paying market leading rates for a sustained period of time is expensive. As is maintaining and improving Internet banking platforms.

What you see today is two brands offering much the same. One restricted to online only.

Others followed similar strategies. Halifax via Intelligent Finance. Abbey via Cahoot. Egg sprung up and then contracted. All these brands are insignificant today.

dada44

thankyou

may i ask what you mean by insignificant ?

so if you were choosing between one or the other, you would say there isn't much of a difference?

to me it would seem to make more sense if they consolidated these two brands together now

Raksha

I wish the banks knew what the difference is - I often get statements and letters referring to my Smile account with Co Op letterhead, which is very confusing (and it don't take much )

opinions4u

dada44 wrote: »

may i ask what you mean by insignificant ?

They were launched with a splash. They grew quickly and successfully. They then realised that when they eased their rates back a little they lost custom. In other words, they worked as loss-leaders but weren't sustainable business models. Many reduced the value of their offerings, lost lots of customers and milked what the could out of those who remained.

so if you were choosing between one or the other, you would say there isn't much of a difference?

I haven't analysed their offerings closely, but if they look similar and I wasn't looking further away I'd choose the branch option.

to me it would seem to make more sense if they consolidated these two brands together now

That would involve new T&CS for Smile customers and disrupt a profitable customer base. Potentially losing large chunks of it.

jimjames

opinions4u wrote: »

That would involve new T&CS for Smile customers and disrupt a profitable customer base. Potentially losing large chunks of it.

The same with Cahoot that Santander seem to be continuing with.

I'm sticking with them as 1% on a current account isn't bad - I know it could be bettered with Lloyds but for the amount of interest it isn't worth the hassle.

Voyager2002

I have accounts with both Co-op and Smile.

The on-line service is better with Smile: the website allows you to do more things.

Up to now there have not been that many Co-op branches, so getting to a branch would not have been convenient for many people. Of course that is changing now, but I still find it easier to spend a few minutes doing my banking on-line rather than going into town and waiting to see someone.