Banks may have to give loyal customers better interest rates - MSE News

Sea_Shell

So us switchers are probably going to get less favourable offers, if they have to up base rates for everyone!!

Cheers for that.

jimjames

Paul_DNAP wrote: »

I think (hope) most people on this forum are savvy enough to regularly ditch & switch poor accounts after the initial attractive rates have ended.

So it'll be very bad news for us as the best deals get pulled

18cc

I would like it if they actually offer the facility to switch savings accounts like you can switch a cash ISA

currently if it's not an isa you have to have the money paid in to say your linked account and then from there paid out again to the new provider - tripping over all the fraud checks your bank puts in the way for new payees...

LHW99

Sometimes, customers are happy to stay with a bank that has given them good service, rather than keep changing just for the sake of an extra 0.x%.
I haven't changed our main current a/c & linked savings for a lot of years precisely for that reason. I do move ISA's / other cash savings every 1-2 years, but as Paul_Herring says, it takes time, I've better things to do and best rates tend to leapfrog each other in months, not years, before falling back as the bonus rates disappear.

badger09

harz99 wrote: »

I would prefer to see a guarantee that existing savers in easy access accounts, and those existing savers renewing fixed term accounts always be offered the best available rate for the bank/building society offers for those products at the time. So on-going for easy access and at time of initial roll over for fixed term.

Do you have any evidence that this doesn't already happen?

DennisTenus

TheShape wrote: »

That's handy. I'm a loyal customer of nearly all of the banks.

Me too, for interest which aren't you a customer of?

Paul_Herring

DennisTenus wrote: »

Me too, for interest which aren't you a customer of?

Landsbanki/Icesave.

Not any more, anyway...

eskbanker

badger09 wrote: »

harz99 wrote: »

I would prefer to see a guarantee that existing savers in easy access accounts, and those existing savers renewing fixed term accounts always be offered the best available rate for the bank/building society offers for those products at the time. So on-going for easy access and at time of initial roll over for fixed term.

Do you have any evidence that this doesn't already happen?

For easy access, Tesco is certainly one that changes interest rates on its Internet Saver but only for new applications rather than adjusting the rate for existing accounts - I opened one at 1.12% in late May but had to open another when the prevailing rate increased to 1.3% in June, whereas harz99's desire, not unreasonably, would be that those with Internet Savers at 1.12% would automatically receive 1.3% when the account of the same name becomes available at the higher rate, although that would obviously cut both ways when rates were decreasing!

On fixed term accounts, I'm pretty sure I've read threads on here where the product offered to holders of maturing Yorkshire accounts isn't the best equivalent one.

Not really appropriate to generalise either way round though, some do and some don't....

badger09

eskbanker wrote: »

For easy access, Tesco is certainly one that changes interest rates on its Internet Saver but only for new applications rather than adjusting the rate for existing accounts - I opened one at 1.12% in late May but had to open another when the prevailing rate increased to 1.3% in June, whereas harz99's desire, not unreasonably, would be that those with Internet Savers at 1.12% would automatically receive 1.3% when the account of the same name becomes available at the higher rate, although that would obviously cut both ways when rates were decreasing!

On fixed term accounts, I'm pretty sure I've read threads on here where the product offered to holders of maturing Yorkshire accounts isn't the best equivalent one.

Not really appropriate to generalise either way round though, some do and some don't....

But harz99's desire is that existing savers in easy access accounts always be offered the best available rate for those products at the time. What you are suggesting is that existing savers automatically be transferred to the higher paying account. That may be what harz99 desires, but isn't what he/she said.

In your Tesco example, savers are free to open the new account, so they are offered the best available rate.

I'm really not trying to be awkward, I just think savers should take some personal responsibility:cool:

I can't comment on the Yorkshire scenario you mention, but was it the case that existing savers were excluded from that better deal?
My experience has been that occasionally on maturity of a fixed rate account, as an existing saver, I was offered a slightly better rate than that available generally.

harz99

badger09 wrote: »

Do you have any evidence that this doesn't already happen?

Personal experience of Kent Reliance offering a lower roll over rate than the one available to new savers at the time. Also I don't ever recall when rates were increasing regularly, (remember those days), that the rate on any of my existing easy access accounts went up to the higher rate automatically.