TSB Classic Plus future...

MrLolly

5% contactless cash back finishes for existing customers (before 1st June) in December.... I really hope they offer something like the Halifax reward or NatWest reward account....

I think TSB offer a good account but they need to keep up with competition. I hope the 5% thing wasn't just a gimmick to get everyone to sign up and then drop it in December

Anthorn

Personally, I think the 5% cashback on the first £100 of contactless transactions is a gimmick to attract new customers but a lucrative one. Whether they extend it possibly depends on what profit they are making from contactless.

The 5% interest on £2000 balance probably has the opposite effect to what is intended again to attract accounts with higher credit balances. Most people I know have opened other accounts and don't keep more than £2000 in their TSB accounts. That means that TSB is losing out on credit balances. So I would expect a revision of a lower interest rate on a higher credit balance in the near future.

bigadaj

MrLolly wrote: »

5% contactless cash back finishes for existing customers (before 1st June) in December.... I really hope they offer something like the Halifax reward or NatWest reward account....

I think TSB offer a good account but they need to keep up with competition. I hope the 5% thing wasn't just a gimmick to get everyone to sign up and then drop it in December

There's not much competition as this and other similar accounts by other banks are loss leaders.

They offer the highest headline rate currently, the amounts limited but still many people would not keep much more than £2000 in an average current account.

masonic

Anthorn wrote: »

The 5% interest on £2000 balance probably has the opposite effect to what is intended again to attract accounts with higher credit balances. Most people I know have opened other accounts and don't keep more than £2000 in their TSB accounts. That means that TSB is losing out on credit balances. So I would expect a revision of a lower interest rate on a higher credit balance in the near future.

They'd need to drop it their rate by about 4.5%. Otherwise they'd be better off borrowing money from elsewhere. 3 month LIBOR is currently about 0.52%. If their aim was to attract high balances from customers at a competitive rate for them, they'd lose a lot of customers.

High interest current accounts exist to bribe customers in the hope they'll move their everyday banking and also take out other products that make the bank profit (since these current accounts lose the bank money unless you run up bank charges). They are not there to provide money for the banks to lend. Most people have less than £2,000 in savings, so their current offering will appeal to more potential customers.