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

MyOnlyPost

Deleted_User wrote: »

Pedantic?

We were talking about HBOS which is £5,000. .

You brought up Tesco in the HBOS thread. You indicated that 60,000 people have switched to Tesco (Not accurate, not all new applicants will be switches) and you brought up the £5,000 figure.

If Tesco re-opens their applications at the same 3% people are not going to switch £15,000 (3x £5,000) from HBOS to Tesco as Tesco will only pay interest on the first £6,000 (2x £3,000). Obviously they will switch £6,000 for the 3% and leave £9,000 where it is for 2%. If another better offer comes along then yes there wil be more switchers but very few people are going to switch accounts to get the exact same interest rate (Atom) as you are suggesting. Most people acknowledge it is better to have multiple accounts rather than all your money in one place.

Most people also appreciate that shedding the current accounts that are being used as savings accounts won't do HBOS any harm. You say what company can afford to lose 300,000,000 in 4 days. HBOS doesn't own that money it is borrowing it at 3% from the general public when it could borrow it much cheaper from the BoE

[Deleted User]

Fair enough. Can't we just agree to disagree? I'm retired, I have the time to keep this going but to what end? I'll do what I think is best for me, you'll do likewise no doubt.

HBOS will lose some patrons over this, even if its only me. That may make them happy or it may not but it will make me feel content. I will have made a stand, even if that is as you imply ineffectual. Doesn't matter, I'll feel good about it. Mean while HBOS are going to be kicking themselves that they didn't lower the rate earlier.

MyOnlyPost

Deleted_User wrote: »

I'm retired,

Gonna have to give you some credit there. I am 42 and I have no interest whatsoever in an app only bank so kudos for that. I am quite tech savvy but I just hate smartphones

[Deleted User]

I have
HBOS paying money into First Direct, TSB, Santander, Norwich & Peterborough and Tesco.
TESCO paying money into Nationwide, TSB, Santander & HBOS
TSB paying into Tesco
NATIONWIDE paying into Santander

That's £8,705 moving each month all being funded by an annual pension of less than £20,000 (Net) and
that doesn't include the funding of 5 separate regular fixed savers. My heads spinning.

Putting money into Atom and be able to close four of those accounts with an added bonus of a small increase in interest is very appealing at this moment in time.

Having said that, I am looking into this new Barclays Family Springboard account where you can help out family members in getting a mortgage and still get 1.75% interest. Would seem like a nice thing to do.

KTF

You dont need to pay money in to Tesco. TSB can be an internal standing order from account 1 to 2 and vice versa.

[Deleted User]

I pay money into Tesco so Tesco can pay everybody else. I know I could just move money there and back but, I don't know, just hiding my tracks a bit I guess. It just seems wrong to send £500 to Santander from HBOS and then send the same amount back a day later. I know its not against the rules but......

KTF

It doesnt have to be there for 24h. I transfer in to HBOS from Santander, cycle round then transfer out in 5 mins or less

Zanderman

Deleted_User wrote: »

I pay money into Tesco so Tesco can pay everybody else. I know I could just move money there and back but, I don't know, just hiding my tracks a bit I guess. It just seems wrong to send £500 to Santander from HBOS and then send the same amount back a day later. I know its not against the rules but......

Haven't agreed with some of your posts on this thread but do with this one! We (Mrs Zanderman and me) also move cash around 'unnecessarily' within our funding sequence, merely because it doesn't feel right to do the absolute minima. Doing the raw minima would make us feel like we're taking the mickey.

I know we ARE taking the mickey for some of the accounts - but it just feels slightly better to do it with some subtlety. Almost certainly makes no difference at all, and puts us to more trouble, but it feels better!

[Deleted User]

I did think about trying for a HSBC account to get the £150 switching bonus as HBOS is my "Main" current account but officially I don't have enough money coming in, though of course I can easily pay in enough. The 2% is going to get give me £100 a year so going to HSBC would be a wise move.

[Deleted User]

Zanderman wrote: »

Haven't agreed with some of your posts on this thread

I'll let you into a little secret. I haven't agreed with some of my posts on this thread.