Bank accounts v Building Societies

CKhalvashi

JuicyJesus wrote: »

Nationwide are a bank in building societies' clothing. They operate no differently to any other major banking group, have roughly the same tariff of charges as most banks and have roughly the same level of service. They make a marketing virtue of being "different" but don't make it clear how. They claim to be a mutual, but you receive no dividends as you would with the Co-op or a credit union, and if the business sells itself off you have no entitlement to a windfall any more; the effect being "mutually owned" is completely meaningless since the "owners" will never get any benefit from it, and it's just marketing speak.

I do always find it amusing though when people consider the application of bank charges as per the bank's stated tariff and terms to be "bad service" as the OP seems to. Especially when Nationwide will do exactly the same thing in the same scenario and it's entirely the customer's fault.

It seems to be a thing with customer mentality.

What we need, is an organisation to provide decent (2.5% + BR sounds OK) savings, decent (4% + BR, rising to, say, 15% + BR depending on risk) loans, and for any profit to be donated to the community.

I'd welcome this, especially if it was to offer specialised lending to small business, although like most on these forums, I haven't got the £50m+ to set it up!

CK

opinions4u

CKhalvashi wrote: »

It seems to be a thing with customer mentality.

What we need, is an organisation to provide decent (2.5% + BR sounds OK) savings, decent (4% + BR, rising to, say, 15% + BR depending on risk) loans, and for any profit to be donated to the community.

I'd welcome this, especially if it was to offer specialised lending to small business, although like most on these forums, I haven't got the £50m+ to set it up!

CK

You can dream.

A 1.5% margin before write-offs and expenses is a sure fire way to an FSCS claim within a few years.

CKhalvashi

opinions4u wrote: »

You can dream.

A 1.5% margin before write-offs and expenses is a sure fire way to an FSCS claim within a few years.

Maybe 4% is too low, however loan rates are down to 4.9% now, I believe, and this would be a rate for the select few customers.

CK

rb10

CKhalvashi wrote: »

It seems to be a thing with customer mentality.

What we need, is an organisation to provide decent (2.5% + BR sounds OK) savings, decent (4% + BR, rising to, say, 15% + BR depending on risk) loans, and for any profit to be donated to the community.

I'd welcome this, especially if it was to offer specialised lending to small business, although like most on these forums, I haven't got the £50m+ to set it up!

CK

No chance ... you'd never be able to manage your balance sheet.

At the moment, your savings would be market-leading, so you'd get loads of money in through the door, that you have to spend 3% to keep.

But your mortgage sales would plummet, as your rates would generally be higher than customers can get elsewhere.

So what do you do with all this extra money you've got? You can't lend it, as your rates are too high.

Hominu

rb10 wrote: »

So what do you do with all this extra money you've got? You can't lend it, as your rates are too high.

Your never going to have everyone asking for there money at the same time so invest 50% of it across a variety of fields, hopefully the winners will more than make up for the losers and you'll make a profit.

If it comes to the point where you can't afford to pay back your savers then simply ask for a government bail out and try again.

Isn't that how banks work?

JuicyJesus

Hominu wrote: »

Your never going to have everyone asking for there money at the same time so invest 50% of it across a variety of fields, hopefully the winners will more than make up for the losers and you'll make a profit.

If it comes to the point where you can't afford to pay back your savers then simply ask for a government bail out and try again.

Isn't that how banks work?

It's roughly how HBOS worked.

pinkdalek

JuicyJesus wrote: »

It's roughly how HBOS worked.

More like Northern Rock............:beer:

opinions4u

JuicyJesus wrote: »

It's roughly how HBOS worked.

Not at all.

The incompetence was much more extraordinary.

I'll never forget James Crosby lauding his brilliant merger with "it means we no longer have to be so reliant on the property market".

So he then lent to every property developer on the planet.

Brilliant.

JuicyJesus

opinions4u wrote: »

Not at all.

The incompetence was much more extraordinary.

I'll never forget James Crosby lauding his brilliant merger with "it means we no longer have to be so reliant on the property market".

So he then lent to every property developer on the planet.

Brilliant.

Do I detect a small note of bitterness there, o4u?

opinions4u

JuicyJesus wrote: »

Do I detect a small note of bitterness there, o4u?

Put it this way, my share options were looking good to get four Australian weeks centred around 2 and a half Ashes tests!

They ended up being worth less than the dealing costs!!