Incentives to Switch Bank

RG2015

The following is on the Banking and Savings page of the main MSE site.

Best Bank Accounts
£200+ bonus or 5% interest
!!!!!ing about your bank? Profit from the price war and get paid to switch

I am uncomfortable about banks offering cash to switch to them and I have never done this. I have however opened accounts to get higher interest rates.

Is offering a cash incentive to switch any less ethical than offering an inflated interest rate?

RG2015

Ha!

I copied the quote straight from the main MSE site and the forum software redacted it for containing offensive language.:rotfl:

Hint: The redacted word is the female version of a dog.

https://www.moneysavingexpert.com/banking/

Katiehound

You use the word ethical in connection with banking?
Generally they seem to extract as much from the banking public as possible so a few gifts 'coming back' to us is a bonus.

I had an account with NatWest for many more years than I care to remember- they had my salary every month and paid me nowt in interest. Then when I went overdrawn just once, by accident, a day before the salary went in they charged me interest! I didn't actually talk to the branch manager (those were the days!) but they then decided to calculate interest and said I owed them nothing. Strange accounting, but of course in their favour.
Since then, if a bank is making gifts I might as well be there to receive one!

tempus_fugit

Yes, as Katiehound says, the banks get enough from people so what is wrong with taking advantage of anything they give us back, even if it's to get our custom for a while. We have to play them at their own game so I see nothing to be uncomfortable about. Once I've exhausted all the switching incentives that I want to benefit from I will settle down to particular banks, plus I have several accounts that haven't moved and won't be moving either so the one or two that will be switched won't cause any issues.

The_weedie

Have a main bank account.

Have a second bank account and have a few DD/SO coming out of it, then start switching using this buffer account. Once you get paid the cash, move onto the next one.

It's hassle and pain free just takes about 10 minutes to sign up and they handle everything on their side.

Long story short, take advantage of it while it last and start switching here there and everywhere!

enthusiasticsaver

I am not sure about your use of the word ethical and do not see how banks offering switching bonuses or high interest rates is any different to any business offering incentives for you to buy their products.

I do not often take up the switching offers simply because I don't want the hassle of the switching system going wrong and do not trust the admin teams to get it right. I have done it once though with a spare Santander 123 when they upped the fee and dropped the interest rate so I decided to switch to First direct using the switching service and got £150 for doing it and distributed the balance of the Santander 123 to other higher paying banks like TSB, Nationwide Flex, LLoyds Club, Tesco and BOS.

I have not done it again since then though but it went ok. The hassle of constantly moving money around and setting up new direct debits was a pain and my OH complained he was confused about where everything was. I closed a lot of the current accounts a couple of years later and now we just have Santander 123,2 Tescos and my personal account with First Direct and OHs personal account. 5 is enough to keep on top of.

RG2015

enthusiasticsaver wrote: »

I am not sure about your use of the word ethical and do not see how banks offering switching bonuses or high interest rates is any different to any business offering incentives for you to buy their products.

But I am not buying their product. I am opening a bank account that I am not going to use. I may even be switching from a bank account that I have never used.

First Direct for example does not require any direct debits yet I get £100 or £125 via MSE.

Which other business offers £125 for doing nothing?

RG2015

Katiehound wrote: »

You use the word ethical in connection with banking?
Generally they seem to extract as much from the banking public as possible so a few gifts 'coming back to us is a bonus.

Banks screw the UK for millions and we just grab the crumbs they throw or way.

enthusiasticsaver

RG2015 wrote: »

But I am not buying their product. I am opening a bank account that I am not going to use. I may even be switching from a bank account that I have never used.

That is your choice not to use it but obviously they hope you will. I received a switching bonus from FD and pay money in monthly but have no direct debits. I am still using it and if you want to avoid the monthly fee you will also need to pay money in monthly unless you open another savings account with FD but not a regular saver.

First Direct for example does not require any direct debits yet I get £100 or £125 via MSE.

Which other business offers £125 for doing nothing?

Plenty of companies offer switching bonuses as well as banks. There is often cashback bonuses if you switch insurance companies or energy suppliers. It is an incentive for people to use their products and some will and some won't and will just switch and leave it. If you feel guilty taking their money though just don't do it.

RG2015

enthusiasticsaver wrote: »

If you feel guilty taking their money though just don't do it.

Thanks for your replies and yes, I guess I would feel guilty but that was not the point.

It just has a murky feel about it. Even Martin Lewis refers to the switchers as "bank tarts" but then launches a search for Britain's biggest bank tart. I just feel sad that we as a society are lauding this as some sort of achievement.

https://www.moneysavingexpert.com/news/banking/2016/07/britains-biggest-bank-tarts-revealed-we-made-1565-switching

Mchambers

Don't forget that you can make money via complaining. Great fun as you well know;);).

I have already identified my next compliant victim. You can always rely on the 'Go-to' Bank