Is there any value in loyalty?

Yellow_mango

We have banked with Barclays for about 20 years. We have a joint account, current accounts each, various savings accounts (mostly empty right now), and a couple of barclaycards.

I have had no problems. The app / online banking does what I need it to, and it’s convenient being able to see all our accounts in one place. I have on occasion needed to go into branch, and that’s all been fine too. On the other hand, neither are there any financial benefits. The interest paid is pitiful. We have a Premier account, and pay for the travel pack. We do use it, and I think it’s reasonable value, but I know we could get the benefits elsewhere if we wanted (and probably save a little).

At what point is it worth switching? Will I lose anything by switching away from such a long standing account? I have no intention of moving the credit card (we do all the household spending on it and get cash back - only 0.5% but it’s something). So there would be a marginal increase in managing accounts at different places. And I’m worried the app won’t be as functional / easy to use.

Am I just getting old and change averse? Are any of these valid reasons not to switch?

Jami74

Why don't you open another account and see if you like the app. If you do you could then switch.

Or if you are after some switching benefits, open a second account with Barclays and once it is all set up switch it to the account you fancy. If once you've switched your second account you like it, you could then manually switch your main account over.

Yellow_mango

Thank you. That’s a good idea. Could I set up an individual account first, then if I’m happy with it switch the joint account?

I’m not so bothered about the switching bonuses (though would be nice obviously). More ongoing benefit of interest / cashback etc. (I am considering the Santander 123).

Zanderman

Yellow_mango wrote: »

Thank you. That’s a good idea. Could I set up an individual account first, then if I’m happy with it switch the joint account?

You can do anything you want, there's no rule saying how many current accounts you can have or with how many banks. So open a single account elsewhere by all means. Or a joint. Or both. Or multiples thereof.

Whether you want to actually switch is also entirely up to you. There's no need to - it's only a benefit if the other bank suits you better, or if you switch for a bonus (and for that it needn't, necessarily, be your main account anyway)

Ergates

Yellow_mango wrote: »

At what point is it worth switching?

As soon as the benefit to you out-weights the hassle in doing so.

Yellow_mango wrote: »

Will I lose anything by switching away from such a long standing account?

Not really no. Banks like customers to be loyal (because it's in the bank's interest), but they don't really offer any benefits for doing so. Quite often the opposite really, as they'll make offers to new customers in order to attract them in, which they don't then offer to existing ones.

Zanderman

Yellow_mango wrote: »

Will I lose anything by switching away from such a long standing account?

Ergates wrote: »

Not really no. Banks like customers to be loyal (because it's in the bank's interest), but they don't really offer any benefits for doing so.

There is also the concept of a long-banking relationship being useful for other things, outside of the bank you have a relationship with. Many banks you've not been with before ask you, for example, when opening a current account whether you have another account and how long you've had it.

This is also, as I understand it, a concept useful in mortgage applications etc - i.e. a long-standing banking relationship may have merit.

Not clear to me why, or indeed even if it's true.

But I always, in answer to such questions, refer to my Smile account, held for 20 years. i used to refer to my RBS account, which I had for 30 years, but, er, i switched that.

Useful or not it feels better than saying '5 months'. Gives an impression of solid reliability, even if, actually, your day to day banking is tarted around every 6 months and you only keep an old account to say you have an old account.

jonnygee2

This is also, as I understand it, a concept useful in mortgage applications etc - i.e. a long-standing banking relationship may have merit.

Not clear to me why, or indeed even if it's true

It's on your credit file and as banks credit scoring is normally secret it is difficult to tell.

But, I suspect it's used more for the anti fraud scoring systems used for short term credit than it is for mortgage applications. For mortgages, if you have the disposable income and deposit to meet the regulatory requirements banks are going to want to lend that mortgage to you.