Best bank account for pensioner

Sunshine_and_Roses

Looking for an account for my Mum. I hold POA for her, she currently has Santander everyday current account (should have been 123, but error made at Santander and complaint being looked into. Long story...)

The account is used for her pension to be paid into, and then a standing order going into a joint 123 account with my Dad where all bills are paid from. She would need a cheque book and debit card for small payments, birthdays etc.

The account would have a running balance of between £3000 and £5000, Mum does not want it to go much below this in case she needs emergency money.

Has anyone had experience of switching accounts when holding POA? Any suggestions on which account would be best, so that I could use the app as well as Mum having statements?

Thanks for any help

Anthorn

Not Metro Bank ROFL.

The banks which I applied to when I became a state pensioner which accepted my application:
- TSB Plus with overdraft now closed
- Lloyds Bank Classic Account including overdraft facility and Platinum Low Rate credit card.
- Starling Bank with overdraft facility my main bank into which my state pension including Savings Credit is paid by transfer from DWP.
- Triodos Current Account recently opened because I may switch all my bank requirements to them due to eco friendliness. I still lament the predicament in which Co-op Bank found itself!

As far as I know all the above banks accept accounts which are subject to Power Of Attorney but might do so under special conditions

agrinnall

Anthorn wrote: »

Not Metro Bank ROFL.

What have you got against Metro, I've never had any significant issue with them?

OP, how does your mum wish to use the account. For my mum it was important that there is a branch local to her that she can go into because she doesn't use internet or phone banking - if that's a factor for your mum it may override any other factors if there are only a small number of banks she can get to (there used to be 2 for my mum but Lloyds closed the local branch so she has no choice within walking distance now).

Vortigern

clareski wrote: »

Has anyone had experience of switching accounts when holding POA? Any suggestions on which account would be best, so that I could use the app as well as Mum having statements?

I've recently switched using PoA from Santander123 to Halifax.

Santander did not allow me, as attorney, to have a debit card, but they allowed online access alongside my own account.

Halifax allowed me to have debit card, cheque book and online access. The online access uses a different ID from my own.

I don't use apps, so can't comment there.

With a running balance between £3,000 and £5,000 I'd suggest Club Lloyds or BoS Vantage. Both pay 2% interest, both require 2 DDs to pay out monthly, both require specified amounts of cash to pass through the accounts. Neither pays a switch bonus.

ValiantSon

agrinnall wrote: »

What have you got against Metro, I've never had any significant issue with them?

Please don't ask. They rejected him for an account and he thinks it is due to age discrimination and has raised a complaint with them. A few of us have tried to explain to him, but he's having none of it. If you really want to know, then have a look here: https://forums.moneysavingexpert.com/discussion/5776978

Sunshine_and_Roses

She uses the account to pay in cash and cheques for a little business she has, write the odd cheque for birthday gifts, charity donations etc.

Santander was easy as two branches in the town centre, and her account is on my online mobile banking so I can make payments for her if needed. A branch would be handy for paying in cash.

Was thinking of m&s as she has their credit card, and transferring £1000 from their joint account and back again. Would also need to set up another dd. I know she would love the gift card!

Will look at the other bank accounts paying interest, thanks for the recommendations.

ValiantSon

clareski wrote: »

The account is used for her pension to be paid into, and then a standing order going into a joint 123 account with my Dad where all bills are paid from. She would need a cheque book and debit card for small payments, birthdays etc.

The account would have a running balance of between £3000 and £5000, Mum does not want it to go much below this in case she needs emergency money.

I'm assuming there will be no direct debits on the account because all of your parents' bills are paid through their 123 account. This rules out Tesco (3% interest on £3000, but needs 3 DDs); Club Lloyds (2% interest on £5000, but needs 2 DDs); and Bank of Scotland Vantage (2% on £5000, but needs 2 DDs). If she would have some DDs then I'd suggest having a look at these. Instead, I'd suggest looking at Nationwide FlexDirect who will pay 5% on £2500 in the first year and then 1% each year after that and requires no DDs. Alternatively, she could consider TSB Classic Plus, which pays 3% on £1500 and requires no DDs, but it would not be until the third year of holding the account that she beat the return from Nationwide.

You would need to request a cheque book with all of those accounts. Very few banks provide them as standard these days, but it is a pretty straight forward process to get one, and all will provide a debit card.

Links to details of power of attorney with Nationwide below:

https://www.nationwide.co.uk/support/someone-managing-my-finances/registering-your-lasting-power-of-attorney

https://www.nationwide.co.uk/support/managing-someone-elses-finances/lasting-power-of-attorney

I don't believe TSB have anything on the website, but section 14 of the account terms and conditions deals with this.

ValiantSon

clareski wrote: »

She uses the account to pay in cash and cheques for a little business she has, write the odd cheque for birthday gifts, charity donations etc.

Take care with this. Personal accounts are not meant to be used for business purposes, and if the bank suspects that they are then they can, and will, shut the account. If her business is very low key and the cheques are not too frequent, and made out in her name, then it may not be an issue, but don't assume that it is okay.

agrinnall

ValiantSon wrote: »

Please don't ask. They rejected him for an account and he thinks it is due to age discrimination and has raised a complaint with them.

Ah, it was him was it? I'd seen the thread before but it was so unlikely to actually be age discrimination that I didn't bother to keep up with it.

Anthorn

agrinnall wrote: »

Ah, it was him was it? I'd seen the thread before but it was so unlikely to actually be age discrimination that I didn't bother to keep up with it.

Compare Metro Bank's rejection with my previous post in this very thread. The fact remains that Metro Bank is highly likely to reject applications from those who are over a certain age and/or who are pensioners so based on my own personal experience I am not going to recommend Metro Bank to pensioners. Very simple really.

colsten

Anthorn wrote: »

Compare Metro Bank's rejection with my previous post in this very thread. The fact remains that Metro Bank is highly likely to reject applications from those who are over a certain age and/or who are pensioners so based on my own personal experience I am not going to recommend Metro Bank to pensioners. Very simple really.

Nonsense, really.

I am "over a certain age" and I have a Metro account.
I know others in their late 60s and early 70s who have a Metro account.
I don't ask strangers their age, but in my local Metro shop, there are always customers of all ages, including very senior looking ones.

This isn't to say that everybody who applies for a Metro account will get accepted. Just like anybody can get rejected by any other bank, for a variety of reasons.

Metro isn't my main account but I would unreservedly recommend it to anyone who is interested in Metro. You are the only person I have seen, or heard of, who bears a grudge against Metro.