MSE News: Bank switching 'hassle' must be eliminated, as full-scale current account

Alpine_Star

jamesd wrote: »

So far as revenue goes, it's worth knowing that Hargreaves Lansdown reported making around 0.9% interest on uninvested money left with it. It can't use leverage but a bank can, so presumably can make more than that.

Lots more. In 2006 banks generated £4.1b in net interest income from £97b of in credit balances, so around 4%.

Chrisblue1962

I recently went into Lloyds to swap all my direct debts from my YBS Cash Converter account to my Lloyds basic account but staff at branch said they will NOT do the transfers for me , probably because they make no money from basic accounts - so much for customer service!

I am now gradually seting up my direct debits manually.

PeacefulWaters

Alpine_Star wrote: »

Lots more. In 2006 banks generated £4.1b in net interest income from £97b of in credit balances, so around 4%.

What did they make in the low interest environment of 2013?

grumbler

Chrisblue1962 wrote: »

I recently went into Lloyds to swap all my direct debts from my YBS Cash Converter account to my Lloyds basic account but staff at branch said they will NOT do the transfers for me , probably because they make no money from basic accounts - so much for customer service!

I am now gradually seting up my direct debits manually.

They simply fobbed you off and you let them do this.

...our rules say that if you want to move your account to another bank, both your old and new bank must provide a prompt and efficient service

https://www.fca.org.uk/static/fca/documents/fsa-know-your-rights-guide.pdf

grumbler

PeacefulWaters wrote: »

What did they make in the low interest environment of 2013?

They borrow money (including from their customers) virtually for free, but keep lending it - and not at the "low interest"?

colsten

Chrisblue1962 wrote: »

I recently went into Lloyds to swap all my direct debts from my YBS Cash Converter account to my Lloyds basic account but staff at branch said they will NOT do the transfers for me , probably because they make no money from basic accounts - so much for customer service!

No need for conspiracy theories. It is as simple as YBS having chosen not to participate in the CASS - - and that would most likely be mainly be cause they do not offer current accounts.

The YBS Cash Transactor (it's not called Cash Converter) isn't a 'proper' current account, which is probably the reason why YBS did not invest into the CASS.

Chrisblue1962 wrote: »

I am now gradually seting up my direct debits manually.

You do not have to set up your direct debits manually - - all you have to do is call your existing DD payees, or use their websites, and tell them of your new sort code and account number. You best do this just after a DD has been paid, to give the payee time to update their systems. Check the DD will appear on your new account and has vanished from your YBS CT.

colsten

grumbler wrote: »

They simply fobbed you off and you let them do this.

They didn't. YBS is not a participator in the CASS. That's not the fault of Lloyds (and YBS probably don't have a justifiable reason to be part of the CASS).

PeacefulWaters

Most basic bank accounts don't offer switching services when you move to them.

PeacefulWaters

grumbler wrote: »

They borrow money (including from their customers) virtually for free, but keep lending it - and not at the "low interest"?

Was that a straight answer to a straight question?