We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Bank of Scotland to cut rate on top-paying current account

Options
13567

Comments

  • eskbanker
    eskbanker Posts: 31,850 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Fair enough, you're right but why do you think 60,000 people applied for a Tesco Current Account in four days?
    See colsten's post #5 above....
    You give somebody loyalty in this world you get shafted, the only way anybody can get noticed is to take action.
    I don't think anyone is disputing the need to be vigilant for best deals in the market and shifting funds around accordingly but the emotive gung-ho notion that this 'punishes' them in some "let's show 'em" way is a tad simplistic and naïve!
  • badger09
    badger09 Posts: 11,273 Forumite
    First Post First Anniversary Name Dropper
    Options
    Zanderman wrote: »
    Can you offer more interest than my mattress? Mine is very interesting.

    Probably;).

    But due to Money Laundering Regulations, I advise you not to try an initial test deposit until you are satisfied that this is a genuine offer and appropriate to your current needs.

    Remember, returns on your investment are not guaranteed. They can go down as well as up.

    You can rest assured, my mattress is covered by watertight protection.:D

    I can't believe I've written that on a public forum. What a reckless badger:rotfl::rotfl:
  • [Deleted User]
    Options
    I don't think anyone is disputing the need to be vigilant for best deals in the market and shifting funds around accordingly but the emotive gung-ho notion that this 'punishes' them in some "let's show 'em" way is a tad simplistic and naïve!

    Really? Imagine had the Tesco account still been available and on the strength of the HBOS reduction the 60,000 people spoken of before all moved their £5,000 from HBOS to Tesco. Do you really believe that any company can afford to take a £300,000,000 hit in four days?
  • eskbanker
    eskbanker Posts: 31,850 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Really? Imagine had the Tesco account still been available and on the strength of the HBOS reduction the 60,000 people spoken of before all moved their £5,000 from HBOS to Tesco. Do you really believe that any company can afford to take a £300,000,000 hit in four days?
    Do you really believe that is in any way a realistic scenario?
  • [Deleted User]
    Options
    Of course. It has to be. 60,000 did it in 4 days two weeks ago. If a bank now offered 5% on 5,000 to anybody who switched from HBOS in the next 7 days, don't you think that number would be reached or even exceeded?
  • MyOnlyPost
    MyOnlyPost Posts: 1,562 Forumite
    Options
    Personally Marvo5 I find the strangest thing is that you are criticizing a company for cutting their interest to *only* 8x the BoE base rate.

    As for your other musings, I cannot move my money out to a higher paying bank account as I already maxed out all the higher paying bank accounts (and some of the lower ones too). I will not be alone in this so BoS are not going to lose customers like me who have £30k with them unless I chose to go into S&S or P2P
    It may sometimes seem like I can't spell, I can, I just can't type
  • eskbanker
    eskbanker Posts: 31,850 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Of course. It has to be. 60,000 did it in 4 days two weeks ago. If a bank now offered 5% on 5,000 to anybody who switched from HBOS in the next 7 days, don't you think that number would be reached or even exceeded?
    I'm not disputing the 60,000 Tesco applications figure, just the ridiculous extrapolation that this can be equated to all 60,000 moving substantial sums from one specific institution within a four day period! Your latest hypothetical scenario is no less fanciful, so why don't you just go ahead and move your £15K and keep waiting for it to trigger the collapse of a major bank....
  • [Deleted User]
    Options
    I'm not disputing the 60,000 Tesco applications figure, just the ridiculous extrapolation that this can be equated to all 60,000 moving substantial sums from one specific institution within a four day period! Your latest hypothetical scenario is no less fanciful, so why don't you just go ahead and move your £15K and keep waiting for it to trigger the collapse of a major bank....

    I will but not until they lower the rate which is still a couple of months away. That's why I found your "Gung Ho" remark quite "ridiculous." To say 60,000 can't be motivated to move their money from one financial institution to another in a four day period when it has already happened is "ridiculous". Where did you think those 60,000 people were keeping their money, under the mattress?

    HBOS are incidentally my "Main" current account, have been for several years receiving my wages when I was at work and now my pension. Opens up the possibility of a switching bonus?
    Personally Marvo5 I find the strangest thing is that you are criticizing a company for cutting their interest to *only* 8x the BoE base rate.

    As for your other musings, I cannot move my money out to a higher paying bank account as I already maxed out all the higher paying bank accounts (and some of the lower ones too). I will not be alone in this so BoS are not going to lose customers like me who have £30k with them unless I chose to go into S&S or P2P

    It's the cut I'm criticizing, how it equates to the BoE is irrelevant, it's no longer as good a deal as it was.

    Very pleased for you personally in regards to maxing out all the other accounts available. That's a tidy sum, £100,000 in the Atom Bank for starters? You're in a very enviable position, some of us are still scraping round for whatever we can get.
  • MyOnlyPost
    MyOnlyPost Posts: 1,562 Forumite
    Options
    It's the cut I'm criticizing, how it equates to the BoE is irrelevant, it's no longer as good a deal as it was.

    Very pleased for you personally in regards to maxing out all the other accounts available. That's a tidy sum, £100,000 in the Atom Bank for starters? You're in a very enviable position, some of us are still scraping round for whatever we can get.

    How it equates to BoE is very relevant, very few banks are offering generous returns and any that are should be applauded, even if they aren't as generous as they once were. When TSB dropped from 5% to 3% I still maxed the 4 accounts I have because the rate was better than elsewhere. I still have £10k in 2 Lloyds accounts even though they dropped to 2% because I can't beat that rate anywhere else for cash.

    I don't have an Atom account, that is a very new offer and I don't like the idea of an App based bank. I also wouldn't put more than the FSCS cover in any bank. When my 2.25% fixed rate ISA matures in May I will have to look again at where that money goes.

    The point I am making is you cannot make assumptions about other peoples behaviour and motivation based on your own circumstances. Anybody who has £10-20k in current accounts is fairly liquid to move that around for better interest. When you have £80k+ then you simply syphon out of the lower accounts and in to the higher.and 2% at BoS will still be a good rate to a lot of people, even if not the best rate in their portfolio. That's why BoS won't be punished by a stampede to leave
    It may sometimes seem like I can't spell, I can, I just can't type
  • [Deleted User]
    Options
    You're right, there wont be a stampede to leave. I'm just saying it might make these big institutions think a bit harder if there was. It was after all the banks that put us in this mess in the first place.

    Inflation is on the rise and hit 1.8 in January. It wont be long before leaving money in a bank account will mean your assets are actually depreciating.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 12 Election 2024: The MSE Leaders' Debate
  • 344.2K Banking & Borrowing
  • 250.4K Reduce Debt & Boost Income
  • 450.1K Spending & Discounts
  • 236.3K Work, Benefits & Business
  • 609.7K Mortgages, Homes & Bills
  • 173.5K Life & Family
  • 248.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards