Is there any value in being loyal to one bank?

camperdown9

Hi

Last time I went to my local Natwest bank I was offered an account review. The lady who I spoke to asked about my other accounts with other banks and made some sort of comment like " we don't get to know you as a customer when you bank like this". I have a number of account with various banks, in order to get as much interest as I can.
I think she didn't like this.

For various reasons I opened a premier account with HSBC in the uk and as I also have a house in France a HSBC France standard current account. The guy I deal with is very pleasant but for months HSBC wouldn't trust me with a contact less debit card and they still won't offer me a credit card. This is despite the fact I have more than £100k with them.

I have an account with Halifax just for the £5. I pay about £50 in each month and two direct debits out. They give me £5 for doing this. This is all the account is used for. On the internet banking when I sign in there is a message saying I'm guaranteed a credit card with them if I want it.

My question is if you pay money into an account say with NatWest, lloyds etc and pay direct debits out of the same account. Plus save with the same bank are they more likely to offer you services like credit cards? In other words value you more as a customer?

Alex

willo65

If you have all your banking in one place it will give the bank more information to make a better informed decision on credit offers etc. it is worth noting that depending on circumstances this wouldn't necessarily be a positive impact.

username

An account review = sales pitch session, to try and flog you extra stuff.

I don't think there's any concept of 'loyalty' any more these days in banking. You're not going to get your debit card delivered on a purple velvet cushion by Jeeves for being with them after 25 years.

The thing about HSBC not letting you have a contactless debit card, do you use the account at all - ie. does money come in and leave?

If there is not much evidence of account usage then they may just leave you on the basic card for a while, maybe to encourage you to use the account a bit more?

I had this with Barclays, I opened up a current account so I could use it as a spare and for online savings access, and then recently I've started to use it for work expenses, and they managed to upgrade me to a contactless card.

In two words. Screw 'em.

mgdavid

username wrote: »

.......In two words. Screw 'em.

...exactly the attitude which makes the bank say
... in two words. Screw him.

camperdown9

username wrote: »

The thing about HSBC not letting you have a contactless debit card, do you use the account at all - ie. does money come in and leave?

If there is not much evidence of account usage then they may just leave you on the basic card for a while, maybe to encourage you to use the account a bit more?

They did in the end give me a contactless card but it took a lot of begging. I have £77K in an investment plan, £23K in an isa, £3k in an regular save account and they still won't trust me with credit card with a £1000 limit. My credit is good and the only thing I thought of as an issue was that I have very little income. However when I asked was that the issue all they would say was that income, credit score and other information was used to make their decision. Thing is the halifax account gets £1050 paid in each month, £1000 paid straight back out again and two direct debits paid from the account and they are saying to me we will give you a credit card.

I am wondering would it be better for me to close my Club Lloyds account and put the two direct debits that are attached to that, plus my day to day banking thought HSBC. Would that make them trust/value me more?

gt94sss2

camperdown9 wrote: »

I am wondering would it be better for me to close my Club Lloyds account and put the two direct debits that are attached to that, plus my day to day banking thought HSBC. Would that make them trust/value me more?

For most banks it doesn't make much difference - but being on the electoral roll is important.

However, HSBC tend to pay more attention to how you use your accounts rather than external credit reports then most banks. So having a regular income paid into HSBC might not be a bad idea.

No need to close your Lloyds/Halifax accounts though - just transfer the money from the HSBC account to meet the relevant funding requirements each month.

If you have HSBC Premier in the UK, you are entitled to HSBC Premier in France as well (for free), so you can also upgrade your HSBC France standard current account - which I think makes money transfers between the two free.

Regards
Sunil

butterflymum

Noticed you say you already have over £100K with HSBC. If in single rather than joint accounts, are you comfortable with the fact the Financial Services Compensation Scheme only covers up to £85,000?

http://www.fscs.org.uk/what-we-cover/products/banks-building-societies/

For some, security of compensation is a stronger pull than loyalty to one institution, hence why many spread across various.

PeacefulWaters

Be a tart. Get what's best for you finding the balance between value, convenience and service. Retain one account for longevity to allow an honest answer to the question "time with bank?", even if there is little activity on that account.

CLAPTON

camperdown9 wrote: »

They did in the end give me a contactless card but it took a lot of begging. I have £77K in an investment plan, £23K in an isa, £3k in an regular save account and they still won't trust me with credit card with a £1000 limit. My credit is good and the only thing I thought of as an issue was that I have very little income. However when I asked was that the issue all they would say was that income, credit score and other information was used to make their decision. Thing is the halifax account gets £1050 paid in each month, £1000 paid straight back out again and two direct debits paid from the account and they are saying to me we will give you a credit card.

I am wondering would it be better for me to close my Club Lloyds account and put the two direct debits that are attached to that, plus my day to day banking thought HSBC. Would that make them trust/value me more?

how low is your income?

most lenders are concerned about your ability to repay any loans and so are obviously reluctant to lend to people with no/low income.

thebritishbloke

Have I missed something, or is there a reason that you won't just take a credit card with Halifax instead if they say that you're eligible? You can always have a direct debit set up to take the payment from a different bank each month.

camperdown9

CLAPTON wrote: »

how low is your income?

most lenders are concerned about your ability to repay any loans and so are obviously reluctant to lend to people with no/low income.

Very low £500 per month, but other than a couple of mobile phones and a few pounds I give to charity the rest of the money is mine to spend/save. There are no bills to pay out of this. OH pays the household bills, insurance, food, travel etc. So I have more available cash than a lot of people who have a full time job. Plus I have money invested with HSBC.