Bank closing my account with no explanation

Vortigern

joe134 wrote: »

I am going to take up Halifaxs £200 = £5 per month offer, switch an unused account.

I don't understand the logic here?

If LBG are closing accounts due to abuse of facility, I'd have thought bagging the Halifax switch incentive and monthly fivers is a greater abuse than keeping your savings in Lloyds and BoS current accounts.

With Lloyds and BoS you/we are lending them some money, for which they pay interest. Isn't this what banks normally do?

With Halifax Rewards you/we are just taking the benefits without giving them anything except operating costs.

If I were the panicking kind, I'd ditch* the Halifax and keep the others.

*or put through a few normal transaction to make it look more like a 'main' account.

joe134

Vortigern wrote: »

I don't understand the logic here?

If LBG are closing accounts due to abuse of facility, I'd have thought bagging the Halifax switch incentive and monthly fivers is a greater abuse than keeping your savings in Lloyds and BoS current accounts.

With Lloyds and BoS you/we are lending them some money, for which they pay interest. Isn't this what banks normally do?

With Halifax Rewards you/we are just taking the benefits without giving them anything except operating costs.

If I were the panicking kind, I'd ditch* the Halifax and keep the others.

*or put through a few normal transaction to make it look more like a 'main' account.

This timing out is really difficult for me to reply, have to keep editing.I did not panic. I was not using the BOS a/cs, I had no Debit Cards, I refused them when I opened them, so difficult to use them to T/cs. that's beside the point, I needed to reduce my funds to £85k, with LBG hitting Hbos, BOS seemed the obvious cull.IF I open a Reward, I will abide by the T'cs, easy, no problem. LBG know that 3 BOS a/cs are not your main A/c, even if you put through a few transactions, which I did, .That's probably why they closed them straight away, unlike LLoyds Club, they asked me to stay, which I did.I will benefit more taking £200 + £5 per month, than keeping £15k in 3 a/cs @ 3%, and no money tied up, which can be elsewhere..

msallen

Vortigern wrote: »

...or put through a few normal transaction to make it look more like a 'main' account.

Thats just what I've recently started doing. Up until a few weeks a go I had numerous accounts that had only ever had the minimum activity to get the benefit, but I have now started using the debit card for each of them to buy lunch with once a month (remaining lunches still go onto current slow stooze card of course!).

Steve_xx

joe134 wrote: »

This timing out is really difficult for me to reply, have to keep editing.I did not panic. I was not using the BOS a/cs, I had no Debit Cards, I refused them when I opened them, so difficult to use them to T/cs. that's beside the point, I needed to reduce my funds to £85k, with LBG hitting Hbos, BOS seemed the obvious cull.IF I open a Reward, I will abide by the T'cs, easy, no problem. LBG know that 3 BOS a/cs are not your main A/c, even if you put through a few transactions, which I did, .That's probably why they closed them straight away, unlike LLoyds Club, they asked me to stay, which I did.I will benefit more taking £200 + £5 per month, than keeping £15k in 3 a/cs @ 3%, and no money tied up, which can be elsewhere..

Sorry to press you here, but what actually worried you about BoS possibly closing the accounts instead of you closing them? In other words what detrimental effect would it have had on you of they had shut the accounts down?

Double_V

I am currently with Barclays.
And thinking to open 2nd account.
Is it good idea to open 2 accounts ?
Which one should I choose ?

Steve_xx

Double_V wrote: »

I am currently with Barclays.
And thinking to open 2nd account.
Is it good idea to open 2 accounts ?
Which one should I choose ?

For what reason do you wish to have a second a/c with Barclays?

MABLE

Steve, I suggest you stop taking the concerns of other posters on your shoulders. Its up to them to what they do with their money. If they have not got the round objects to stay put then thats their problem and not yours.

Steve_xx

MABLE wrote: »

If they have not got the round objects to stay put ....

What does it mean?


In addition, this is a discussion thread. You don't have to take part in it if you don't want to. I'm not taking the concerns of other posters on my shoulders; I am seeking answers to questions. I don't need you to advise me that others can do with as they wish with their cash as it's a fact that I understand very well.


Do you have anything meaningful to add to this thread?

MABLE

Steve_xx wrote: »

What does it mean?


In addition, this is a discussion thread. You don't have to take part in it if you don't want to. I'm not taking the concerns of other posters on my shoulders; I am seeking answers to questions. I don't need you to advise me that others can do with as they wish with their cash as it's a fact that I understand very well.


Do you have anything meaningful to add to this thread?

Hopefully a lot more than you.

eskbanker

joe134 wrote: »

LBG covers HBOS too, unless I'm mistaken?

joe134 wrote: »

The £85k in Isas are with Halifax, which is under the LBG ? so I had £100k under 1 group?Too much.

joe134 wrote: »

I needed to reduce my funds to £85k, with LBG hitting Hbos, BOS seemed the obvious cull.

Without wishing to get bogged down in all the rest of the debate, can I just point out that even though Halifax and Bank of Scotland are indeed part of the Lloyds Banking Group, they operate under a separate FCA licence and so you can safely have £85K with Lloyds and £85K with Halifax/Bank of Scotland, all protected under FSCS.