Is leaving a high balance in a Current account daft ?

diamonds

It is DAFT a overdraft is reported on credit files but not current account balances, informed credit decisions my bottom!

Katiehound

Personally I think it's a bit of boasting to impress you!

However , of course, you are in know- with a bit of effort that amount could be earning quite a bit if spread wisely. I have friends who "can't be bothered" to open a few accounts and reap the financial benefits... perhaps your friend is the same?

I had an account with Nat West for 40+ years and was never overdrawn. Never earned anything and when I did finally leave they managed to lose me £40 due to a missed payment! (Which they would not consider investigating because I was no longer a customer!!!) At one stage I did know the bank manager by name but what perks did that get me?
nada, zero, zilch!

Some folk are just too silly for their own good...........

Flobberchops

anoncol wrote: »

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

They could certainly make a nuisance of themselves - imagine it was getting close to payday and you only had a couple of hundred to your name, only to lose it to some joker going on a fags-and-booze spree with your card in Tesco. The bank may or may not recover all your funds and at any rate you'd be out of pocket for days or weeks. Better to avoid the possibility, surely?

anoncol

Flobberchops wrote: »

They could certainly make a nuisance of themselves - imagine it was getting close to payday and you only had a couple of hundred to your name, only to lose it to some joker going on a fags-and-booze spree with your card in Tesco. The bank may or may not recover all your funds and at any rate you'd be out of pocket for days or weeks. Better to avoid the possibility, surely?

Not going to happen, Tesco dont do contactless .

Seriously though, you had better not cross the road either because you might get run over by a bus. Get your risks in perspective.

Flobberchops

anoncol wrote: »

Not going to happen, Tesco dont do contactless .

Seriously though, you had better not cross the road either because you might get run over by a bus. Get your risks in perspective.

Both of my two Tesco Local's do contactless.

And to use your analogy, most bus drivers will slam on the brakes if they see a pedestrian step into the road, but I'd still rather look both ways before crossing!

Ben8282

While I agree with the general principal that keeping this sort of money in a current account which pays very little interest is not a good idea, you need to give some consideration to the individual circumstances here.
You state that your father has a Natwest Black account. I will assume that your father meets the published eligibility criteria for such a account.
As such, your father is unlikely to be on the breadline and perhaps does not feel that he has any real need for the extra interest. He may well be a higher rate taxpayer which will only reduce the amount of net interest that he receives. He will have to remember to include the interest on his tax return. If he is elderly, he may simply not want the bother of multiple current accounts with multiple banks and any other inconveniences such as moving money around to meet minimum pay in/direct debit requirements etc. Even if he were to get 5% pa on the whole £15,000 that would only be about £450pa net for a higher rate taxpayer. Perhaps he simply does not need this money and prefers to keep things simple. Natwest do pay interest on the Black account although it is paid at a very low rate.

colsten

How does the OP's father come into this?

Ben8282

colsten wrote: »

How does the OP's father come into this?

Thanks for pointing this out. I must have become confused somewhere. Please read friend and not father.