Is there any value in being loyal to one bank?

camperdown9

thebritishbloke wrote: »

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.

No you haven't missed anything, just the snob in me would like an HSBC Premier master card.

ColdIron

Is there any value in being loyal to one bank?

Not a single one I can think of. There is no 'best' bank so you are better served by using the best features and products of several of them

Look at it another way, if you had the best products from a range of banks, in what way would you benefit from moving them all to a single bank?

Chino

butterflymum wrote: »

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?

Doesn't the £85,000 limit apply to deposit accounts?

It appears that the OP has £23,000 + £3,000 = £26,000 in deposit accounts and £77,000 in an "investment plan".

Presumably the £77,000 in the investment plan would only be covered up to the FSCS Investment Limit of £50,000.

But, I agree, the same principle holds - the OP might want to consider investing part of the £77,000 with another institution.

innovate

Some banks and building societies give you access to better interest rates for savings and loans and mortgages if you have certain accounts with them, or have been a member for x amount of time.

However, this does not mean that you have to be exclusively with them. E.g. The Nationwide FlexClusives are available if you have a FlexDirect, or pay £750 a month into a FlexAccount. That is simple enough to achieve whilst still having TSB and LLoyds etc accounts.

There have been a few posts about HSBC people insisting on people moving wholesale to HSBC or not be able to do business there. Which is a completely ridiculous stance to take for any business these days, particularly since HSBC wouldn't match the perks available elsewhere. Mind you, if you would sell your soul for one of their cards, you might have a different view. Don't kid yourself, though, if you aren't making them enough money, they'll drop you like a hot potato

butterflymum

Chino wrote: »

Doesn't the £85,000 limit apply to deposit accounts?

It appears that the OP has £23,000 + £3,000 = £26,000 in deposit accounts and £77,000 in an "investment plan".

I missed seeing the 'split' further down the thread. Opening post only refers to the total.

iAMaLONDONER

camperdown9 wrote: »

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

I'd say from personal experience Santander is quite good at repaying 'loyalty'- they gave me a credit card after 5 months of using that account as my main account (I have 9 other bank accounts btw!)

Thrugelmir

Depends on what you call loyalty. If building a relationship over a period of years benefits you. Then yes. As financial relationships are built on trust. This takes time. Without any history then you are a nobody.

jonesMUFCforever

iAMaLONDONER wrote: »

I'd say from personal experience Santander is quite good at repaying 'loyalty'- they gave me a credit card after 5 months of using that account as my main account (I have 9 other bank accounts btw!)

I think you are confusing loyalty with their marketing and credit scoring systems.
You would have had the card whether you had the account for months or years because of what info they get from the CRA's.

greenorange

I've had a HSBC Student Account since 2010. I rarely used the account, and it was mostly overdrawn. I asked in 2013 for a contactless card which they declined. I then transferred some direct debits over to the account and started using it as my main account. A few months later I asked again and they gave me one.

They will not give me a student credit card though, however that's understandable considering I currently have £3.4k debt on my report.

I graduate very soon and will stick with HSBC for now. Am hoping they'll give me a credit card once my income increases.

I also have a Halifax account and they seem very happy with issuing credit as long as you pay into the account. I used the reward account as my student house bills account, collecting money from 6 other people and then paying it out. They gave me a £2.3k overdraft and offered a credit card. I've since stopped paying into the account and have removed the overdraft, but the credit card offers have also stopped.

ColdIron

The question was 'Is there any value in being loyal to one bank?'

I think any responses that involve more than one bank rather miss the point. Most organisations will reward continued custom but they do this regardless of your fidelity to them alone or not