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Is it moral to churn bank accounts?

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Comments

  • Dobbibill
    Dobbibill Posts: 4,199 Ambassador
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    Loyalty doesn't pay - FACT!
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    If you can't be the best -
    Just be better than you were yesterday.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    TokSik wrote: »
    What's immoral about turning the tables on a rip-off artist (essentially, a licensed thief).
    To me, whoever wrote this question is seriously naive !!

    Nobody is ripping off a bank, or become a licensed thief, by taking up a bank's offer. It is a straight forward legal business transaction, governed by the terms the bank has laid out and that are accepted by both parties.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    Dobbibill wrote: »
    Loyalty doesn't pay - FACT!

    This is generally true but worth noting that several building societies have "existing customers only" offers for better savings rates. Examples include Nationwide, Newcastle BS, Chorley BS, Newbury BS, Santander.
  • karlie88
    karlie88 Posts: 9,114 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Dobbibill wrote: »
    Loyalty doesn't pay - FACT!

    I take it you're not married?

    :p:D:p
    :grouphug: :D Official MSE canny forumite and HUKD VIP badge member :D :grouphug:
  • Dobbibill
    Dobbibill Posts: 4,199 Ambassador
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Name Dropper
    karlie88 wrote: »
    I take it you're not married?

    :p:D:p

    Happily for 20+ yrs

    This refers to companies rather than spouses, family or friends :wink:
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    If you can't be the best -
    Just be better than you were yesterday.
  • esuhl
    esuhl Posts: 9,409 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    CLAPTON wrote: »
    it's legal but immoral as they are clearly not complying with the banks actual intentions

    But the banks actual intentions (as far as anyone could work out) are only to attract new customers. By getting the new account (albeit briefly), you are doing exactly what the bank wants.

    In this instance, the bank has no obvious intention to attract customers who will be "loyal" or continue to use the bank's service. If they did, they would be giving bonuses/cashback to customers who had been with them a long time.

    The idea that bank customers should deliberately and artificially limit themselves to the bonuses/cashback they are willing to take is completely at odds with the banking system which seeks to profit at any possible opportunity.

    Banks have long been happy to invest in industries of death -- tobacco, diamond mining, arms trading, etc. If your money is in a bank, chances are you've invested in industries responsible for killing people. By taking as many cashback bonuses as you can, you're (very slightly) reducing the amount of cash banks have to invest in these industries. So maximising cashback might then be seen as the "moral" thing to do...
  • If switching bank account to get cash incentive is even questioned to be immoral then this site is completely rotten with immorality!

    Using 0% credit cards is immoral in that case too! Comparing car insurance premium is so immoral! Instead we should all let the banks rip us off with extra charges, use payday loans and work for peanuts as accepting (not mentioning asking for) payrise is the next immoral thing to do!
  • schiff
    schiff Posts: 20,319 Forumite
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    I find it strange that someone who is a member of MSE actually posed this question.

    Here's an example of what you read on here: Take out a subscription on Direct Debit, grab the free issue, cash-back, M&S £10 voucher, free tickets to The Mousetrap, etc etc, then the following day cancel the Direct Debit.

    I can't be sure but this is the sort of thing regularly suggested by a certain M Lewis!

    Who he? - Ed
  • CLAPTON wrote: »
    it's legal but immoral as they are clearly not complying with the banks actual intentions

    The banks' intention is to have you transfer your account to them.

    If they are not doing enough to keep you then that is a different question.


    There is no morality involved in this: you have followed what they want you to do and you are rewarded for these hurdles.

    The race is over - you can start again if you want.
  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
    Perhaps a better question should be:-

    " 1) Does it make good business sense for banks to offer cash bonus incentives for people to churn accounts ?

    2) Does it make personal financial sense to open/switch the account for the bonus given your individual circumstances.
    "
    From my point of view it appears that the acquisition of numerous current accounts are becoming the gateway for bonus switches and/or 3-5% rates on balances.

    I do think switching incentives are absurd for a mutually owned building society. The switching money is going from the savers interest payments. Better to attract new members with better savings rates in my ill informed opinion.

    J_B.
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