Is leaving a high balance in a Current account daft ?

gettingthere28

Just looking for a bit of advice, mainly to make sure I am saying the right thing !.

I have a friend who insists on having a large balance in their NatWest Current account (About £15k), I said that was insane as you could open 3 x Bank Of Scotland Vantage accounts and get up to 3% interest, that’s around £37 a month in interest, where at the moment they are getting around £3 a month in interest from NatWest !, I think its daft but they insist it’s better in one bank account and it looks better to the bank !.

Not sure what anyone else thinks but I would prefer more interest rather than leaving it in one account, or is there an advantage to that I don’t see ?.

El_Torro

In what way does it look better to the bank? Why's he trying to impress Natwest?

I agree, money earning interest is better than money not earning interest.

grumbler

gettingthere28 wrote: »

...I think its daft but they insist it’s better in one bank account and it looks better to the bank !.

Well, if your friend really wants to spend £35 p.m. on impressing his bank, how is this different from spending much more on nice car/clothes/watch/perfume... to impress friends?

antrobus

gettingthere28 wrote: »

...Not sure what anyone else thinks but I would prefer more interest rather than leaving it in one account, or is there an advantage to that I don’t see ?.

I have come across people just like your friend, who keep large balances in their current account in the belief that it means that they will be in the bank manager's good books, and thus will get them magical better deals out of their bank at some point in the future .

I also found it a complete waste of effort to explain to such people that what they were doing was both (a) pointless, and (b) stupid.

iainscomputer

I also had a large balance in my Natwest current account, I still have the account & use it. But the balance is with Santander earning every month.
I know people will say the account should be shut, but we do use the perks, travel & breakdown cover.

anoncol

Can you please ask your friend why the bank is impressed?

gettingthere28

anoncol wrote: »

Can you please ask your friend why the bank is impressed?

Its a good question, I would rather earn the interest !

gettingthere28

antrobus wrote: »

I have come across people just like your friend, who keep large balances in their current account in the belief that it means that they will be in the bank manager's good books, and thus will get them magical better deals out of their bank at some point in the future .

I also found it a complete waste of effort to explain to such people that what they were doing was both (a) pointless, and (b) stupid.

Yes, I don't think I am going to win the argument with them, I just personally don't see why anyone would refuse money, which is essentially what they are doing !.

diamonds

anoncol wrote: »

Can you please ask your friend why the bank is impressed?

Because they are earning profit on it for much higher interest on loans than they are paying the customer for their short/long term
lending facility to the bank.


A Friend For Li(f)e springs to mind!

MikeSmith61

Something a bit odd here, NatWest DO NOT pay interest on a Current Account !!, or at least they dont on mine, so how come you are getting even £3 a month interest, it should be ZERO interest a month !.

gettingthere28

diamonds wrote: »

Because they are earning profit on it for much higher interest on loans than they are paying the customer for their short/long term
lending facility to the bank.


A Friend For Li(f)e springs to mind!

Was a 'Friend for Life' not an old Slogan for the Bank of Scotland ?.