Is leaving a high balance in a Current account daft ?

badger09

MikeSmith61 wrote: »

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 !.

I suspect OP means Reward (on certain DD payments) rather than interest;)

Archi_Bald

anoncol wrote: »

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

Also, what would it mean to your friend if the bank were impressed with him? What benefit does he expect, and how would he measure how impressed they are?

Does your friend in reality want to impress you by boasting "I have 15 grand in the bank"? Without realising how daft it is to get no interest for it?

Does he understand he could make at least £450 a year from £15K? With a little more effort, over £600 is even doable.

colsten

gettingthere28 wrote: »

Is leaving a high balance in a Current account daft ?

If the account it with Natwest: yes.

diamonds

gettingthere28 wrote: »

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

Strapline, yes... I was inferring NWest have a friend for life given they are 'impressed' with him giving loan funds at their disposal...


No bank is a friend, nor for life, marketing eh!

diamonds

Archi_Bald wrote: »

Also, what would it mean to your friend if the bank were impressed with him? What benefit does he expect, and how would he measure how impressed they are?

Does your friend in reality want to impress you by boasting "I have 15 grand in the bank"? Without realising how daft it is to get no interest for it?

Does he understand he could make at least £450 a year from £15K? With a little more effort, over £600 is even doable.

Exactly, I have banked 5K in a year...I know, the old man, and you unknown faceless lot (lol). I would never tell anyone outside me and old man...I have people around me with 2K a month salary and debt to the eye balls, they would be jealous of my savings. Besides its quite vulgar to speak about your savings to friends regardless of what status they hold (or think they do).


I've 15K in savings earning poor interest is a boast of stupidity in every sense. :rotfl:

anoncol

colsten wrote: »

If the account it with Natwest: yes.

Off topic sorry, but i swear you've been around here for longer than a year haven't you? Just noticed your badge because i've just got a 3 year one.

bigadaj

anoncol wrote: »

Off topic sorry, but i swear you've been around here for longer than a year haven't you? Just noticed your badge because i've just got a 3 year one.

June 2014 apparently.

gettingthere28

badger09 wrote: »

I suspect OP means Reward (on certain DD payments) rather than interest;)

No it was definitely interest, it said that on the statement, rate was something like 0.50% or something, I never paid too much attention to that when I was shown the statement, other than it was about £3 a month which is very low.

I know it was a reward account as it said that on the statement, I can't remember that exact wording but it was either Black Reward, or Reward Black ?

Flobberchops

I personally think it's foolhardy to keep anything in excess of your immediate required funds and perhaps a couple hundred quid for emergencies on your current account.

Firstly as many people have pointed out, you're effectively refusing free money in the form of interest.

Secondly, if the worst happens and some lowlife pinches your card at an ATM, having the majority of your money in a linked savings pot or even a much-maligned cash ISA will add an extra layer of security to your savings. Especially nowadays when many banks provide contactless cards by default and a thief wouldn't even have to know your PIN to rack up a string of purchases either at contactless paypoints or online.

Third, I think it's good practice to keep your spending money separate from your savings and your savings separate from your emergency fund, etc. It helps to make budgeting more clear. And with online or mobile banking, you can easily transfer funds between your accounts if you decide you need it. I can't speak for everybody else but I tend to find that money in my current account tends to get spent, if I have to manually move money across I become a lot more conscious of my spending.

Ultimately though people are creatures of habit and emotion and OP's facts will never win over their friend's silly beliefs!

anoncol

I can't imaging a theif getting far with contactless with on £30 pier transaction and then the bank is liable anyway.