Bank Account Direct Debits

RegB

Why do banks insist on having various numbers of direct debits on an account before you can access the higher rate of interest accounts. They have you money going in every month, they have some of your savings, and still they want you to have direct debits signed up to the before they'll give you the higher interest rates. What do they want blood! Or do they make money somehow on direct debits?:mad:

NoMore

Because its current accounts and the banks don't really want you using it solely as a savings account, they would prefer you to use their actual savings accounts.

They can't stop you having a positive balance that takes advantage of the interest rate they just put a few hurdles in to 'encourage' people to use it as a current account and not a savings account.

Of course lots of people see that savings accounts currently aren't necessarily the best place for the savings so are happy to work around these hurdles.

As has been said many times on here a couple of Tesco internet savings accounts makes it easy to set DD up where your only passing your only money around the accounts.

molerat

........ Because they can

Probably because they do not want you to use it as a savings account so make you jump through a few hoops.