two direct debits

tir21

Why do banks that offer incentives to switch reqire that you set up a minimum number of direct debits

What is in it for them

Thanks

masonic

It makes it more likely you'll end up using it as your main account, and therefore use other more profitable services from the bank, like an overdraft, loan etc.

YorkshireBoy

tir21 wrote: »

Why do banks that offer incentives to switch reqire that you set up a minimum number of direct debits

They don't.


Of the 4 banks* currently offering £100 switching incentives, none of them stipulate DDs. One of them** stipulates 2 DDs or SOs. The other 3 don't require any regular payments to be switched at all.



* FD, Halifax, M&S, & Co-op
** Co-op

G_M

YorkshireBoy wrote: »

They don't.


Of the 4 banks* currently offering £100 switching incentives, none of them stipulate DDs. One of them** stipulates 2 DDs or SOs. The other 3 don't require any regular payments to be switched at all.



* FD, Halifax, M&S, & Co-op
** Co-op

Though of course (as I suspect you know!) the 'incentive to switch' may include the promise of high interest rates, rather than just a one-off cash payment.

YorkshireBoy

G_M wrote: »

Though of course (as I suspect you know!) the 'incentive to switch' may include the promise of high interest rates, rather than just a one-off cash payment.

Absolutely. And in that regard (and although it doesn't pay "interest" as such), the Halifax Reward account will take some beating on both for many people.

A couple can, by opening 2 sole and one joint account (and setting up a few DDs), make £380 in the first year and £180 a year ongoing...for very little work and outlay.

By all means put your 'lump' with TSB, Nationwide, Lloyds, Santander, etc...but don't miss out on the really easy money!