Can Monthly Account Fees be Haggled?

Jaith

Thanks for the replies. Seems it's as I imagined, just doesn't really happen.

I disagree with those who suggest it wouldn't make sense for the banks to do it though. To my mind it's like any other consumer service of which many will be haggled down: get customers in at a high profit margin, then lower the fee to retain those who would leave, providing they remain profitable - or in some cases at a loss, just to keep the customer base for future revenue...

I guess it's just the norms of the industry (retail banking is old, and perhaps not very innovative), or maybe current accounts aren't very profitable in the first place.

eskbanker wrote: »

Why not switch to Nationwide, potentially taking advantage of their 'refer a friend' incentive on the way? The Current Account Switching Service makes this process very straightforward and if "Nationwide has a much better looking offering with similar benefits" at a lower cost then why wouldn't you take them up on it....

Correct - simply my laziness, I'd be happy to pay slightly more to stick with Halifax to avoid DD switches, new cards, changing online payment methods etc. But when the difference works out around £100 over a year, I'm indeed going to switch.

michaels

Jaith wrote: »

Thanks for the replies. Seems it's as I imagined, just doesn't really happen.

I disagree with those who suggest it wouldn't make sense for the banks to do it though. To my mind it's like any other consumer service of which many will be haggled down: get customers in at a high profit margin, then lower the fee to retain those who would leave, providing they remain profitable - or in some cases at a loss, just to keep the customer base for future revenue...

I guess it's just the norms of the industry (retail banking is old, and perhaps not very innovative), or maybe current accounts aren't very profitable in the first place.



Correct - simply my laziness, I'd be happy to pay slightly more to stick with Halifax to avoid DD switches, new cards, changing online payment methods etc. But when the difference works out around £100 over a year, I'm indeed going to switch.

It does seem odd fiven how much banks spend to recruit new customers that they won't invest any in retaining them. As you say mobile phone companies, broadband and tv companies etc - and even credit card companies - all have retention offers.

Don't forget the referral bonus.

robatwork

PeacefulWaters wrote: »

Well I dont have access to my former employer's guidance notes these days, but throwing a bit of petty cash the way of a customer because they ask for a discount on a product fee that isn't discountable would be gross misconduct.

I can think of two former colleagues who were sacked for waiving product fees when they had no authority to.

These staff member knew they didn't have the authority to do that, so why did they do it?

Was it in the days that staff made commission by getting a quota of deals through/accounts opened?

To OP - banks don't discount, they won't even haggle on mortgage fees

jonesMUFCforever

Banks would not haggle over product fees because of sites like this!
Can you imagine the complaints if somebody on here were boasting that they had half price packaged account and they were refused.

Since the financial crisis and misselling fiasco all bank products are now heavily regulated to make sure that they will not be liable for any future misselling claims.

I agree other companies do try and retain customers but they are not regulated in the same way as banks.