Do long term relationships with banks matter?

Keeping_Motivated

Hi

I am thinking of switching banks for the cash incentive. I have been with my bank for over 20 years. I don't feel loyal to them I am thinking purely of what difference it makes to the wider picture to financial institutions if you have had a long relationship with a bank does it look favourable in any way?

Just to clarify I don't have any plans or need for any credit in the near future so Im not asking for that reason I just wondered if its better to keep an account you've had a long time.

I do have other accounts for different things but I cant switch those as they have a purpose that already benefits me.

Thanks

Zanderman

Long relationship with a bank can help with credit applications, mortgages etc. Worth keeping just in case imho.

Why not just open another account at your main bank and switch that one once it's open?

Edited to add: Or open a new account at your bank but switch the original account if that has DDs etc that might be needed for the switch incentive. The new account at the original bank might be hardly used, but you'll still have been 'with that bank' for 20+ years.

Keeping_Motivated

Thanks, thats a good idea, I'll do that

takman

Zanderman wrote: »

Edited to add: Or open a new account at your bank but switch the original account if that has DDs etc that might be needed for the switch incentive. The new account at the original bank might be hardly used, but you'll still have been 'with that bank' for 20+ years.

That's not a good idea because on your credit report lenders can't see who you have an account with. So all they will see is two new accounts opened and 1 account with a lot of history closed. So it will actually be more of a negative to do it this way.

The best way would be to open a new account with the existing bank and transfer the DD from the old account to this one before switching (if you didn't want to use other DD).

Keeping_Motivated

Ah thanks makes sense

libra10

We have been banking with Nationwide for many years, and they offer several 'loyalty' accounts for customers who have been members for varying numbers of years.


Among other accounts we hold with them, we have an instant access account earning 0.75%. Their loyalty account (with similar conditions) for those who have been members for 15 years or over, is 1% interest.


Not an overly generous loyalty reward for long-term members.

binaryuniverse

Remember, loyalty matters at Nationwide. That's why you can get the exact same offers new customers can get.

theroamingnomad

Zanderman wrote: »

Long relationship with a bank can help with credit applications, mortgages etc. Worth keeping just in case imho.

Agree with this 100%

EachPenny

binaryuniverse wrote: »

Remember, loyalty matters at Nationwide. That's why you can get [STRIKE]the exact same[/STRIKE] worse offers than new customers can get.

(apologies)

A new customer can get £200 to share with a mate plus 5% interest on £2,500 for a year. Nationwide's interest paying current account is one of the most generous for new customers, but one of the least generous after that initial year. Being a member brings little reward.

The Loyalty Saver should really be called the Disloyalty saver as it encourages people to stay for 1% when they could easily be getting 1.2% or more elsewhere.

No_6

Have been with Nat West for over 40 years,
always add it to any application for new credit.

But it only has the minimum of money in it, with a descent OD
which is never used.

Much better accounts to have money in.
But just got a £125 or more.....so I still bank with NW

Katiehound

I was with NatWest for a very long time,about 40 years but just before I left they made a mistake which cost me £40 and they refused to rectify since I was no longer a customer- I discovered the loss months later (connected with a BS regular saver.) ...so essentially they lost me £1 per year!!
That's when I decided loyalty does not pay.

However since then I have kept a main account that I do not intend to switch and it gives me a small (reduced!!) Reward- and helps to prove I am credit worthy.