Why don't banks reward existing customers?

colsten

callum9999 said:

colsten said:

Why do people explain why banks don't offer rewards to existing customers, when in the very thread there is a list of the rewards banks do offer to existing customers?

Because the list you produced is full of trivial rewards in comparison to the new customer switching bonuses? 

I know they're virtually useless to me... I have accounts with almost all of them but hardly use any of the things you mention.

I don‘t, for example, consider £60 per year per account trivial. Nor do I consider 2% interest as trivial. But each to their own. The fewer people chase those rewards, the longer they will probably exist.

Zanderman

williewonder said:

Banks have switch offers, wine offers for new customers, etc. Why don't banks have rewards for existing banking customers?

Because they don't need to.

(edited to add:  though Colsten is quite right - there are some rewards for existing customers - just not as good as many of the switching rewards)

colsten

Zanderman said:

williewonder said:

Banks have switch offers, wine offers for new customers, etc. Why don't banks have rewards for existing banking customers?

Because they don't need to.

(edited to add:  though Colsten is quite right - there are some rewards for existing customers - just not as good as many of the switching rewards)

It depends how you measure "as good as". To me, five times £60 a year from one company is worth at least as much as a one-off switching bonus.

I have also just edited my earlier list to add that Natwest, RBS, Ulster, Halifax, Santander, Yorkshire Bank switch offers were all available for existing customers, too. The Santander and YB offers in particular were a bonanza for those existing customers who wanted it to be a bonanza 

RG2015

colsten said:

Zanderman said:

williewonder said:

Banks have switch offers, wine offers for new customers, etc. Why don't banks have rewards for existing banking customers?

Because they don't need to.

(edited to add:  though Colsten is quite right - there are some rewards for existing customers - just not as good as many of the switching rewards)

It depends how you measure "as good as". To me, five times £60 a year from one company is worth at least as much as a one-off switching bonus.

I have also just edited my earlier list to add that Natwest, RBS, Ulster, Halifax, Santander, Yorkshire Bank switch offers were all available for existing customers, too. The Santander and YB offers in particular were a bonanza for those existing customers who wanted it to be a bonanza 

What is / was the switching offer from Santander? I do not recall them offering one recently.

Edit. Do you mean the cashback, which didn't require a switch?

Zanderman

RG2015 said:

colsten said:

Zanderman said:

williewonder said:

Banks have switch offers, wine offers for new customers, etc. Why don't banks have rewards for existing banking customers?

Because they don't need to.

(edited to add:  though Colsten is quite right - there are some rewards for existing customers - just not as good as many of the switching rewards)

It depends how you measure "as good as". To me, five times £60 a year from one company is worth at least as much as a one-off switching bonus.

I have also just edited my earlier list to add that Natwest, RBS, Ulster, Halifax, Santander, Yorkshire Bank switch offers were all available for existing customers, too. The Santander and YB offers in particular were a bonanza for those existing customers who wanted it to be a bonanza 

What is / was the switching offer from Santander? I do not recall them offering one recently.

Edit. Do you mean the cashback, which didn't require a switch?

Surely the amazon vouchers for referrals?

RG2015

Thanks, not seen this. Is there a thread? I don't frequent the referrer's board.

Zanderman

RG2015 said:

Thanks, not seen this. Is there a thread? I don't frequent the referrer's board.

Finished last year. Nothing to see now!

jbrassy

[Deleted User] said:

Of course banks want to make money from you, but the people on the counter never used to be tied to targets or be as forceful in pushing products at one time, long ago. In terms of applications, they used to have more leeway in making decisions, taking in personal circumstances.

Ahh yes, I remember the good old days before internet banking really took off. When bank staff would have a good natter with their customers in-branch and push them credit cards and loans bundled with some PPI, for which they got a nice little bonus every time a customer took the bait.

Nowadays, there are stricter rules around bank staff remuneration. I think the FCA has effectively banned retail banking employees from receiving bonuses based upon sales targets due to the PPI scandal.

Can someone point me to an era when banks rewarded their existing customers more than they do today (factoring in the Bank of England base rate)? If not, stop complaining. The only way that you'll ensure banks offer better deals is by regularly switching your bank account and ensuring their is sufficient competition in the market.

Eco_Miser

jimjames said:

Out of interest which account have you transferred that just gives a bonus like that as I'd be interested in applying? Most recent one I did required 2x DD to be transferred, open savings account with money paid in and install their app. That was a bit more than "just opening"

It's gone now, but the last transfer I did was into my long-standing Lloyds Club, no DDs, and £100 into the account straight away.

[Deleted User]

jbrassy said:

Deleted_User said:

Of course banks want to make money from you, but the people on the counter never used to be tied to targets or be as forceful in pushing products at one time, long ago. In terms of applications, they used to have more leeway in making decisions, taking in personal circumstances.

Ahh yes, I remember the good old days before internet banking really took off. When bank staff would have a good natter with their customers in-branch and push them credit cards and loans bundled with some PPI, for which they got a nice little bonus every time a customer took the bait.

Nowadays, there are stricter rules around bank staff remuneration. I think the FCA has effectively banned retail banking employees from receiving bonuses based upon sales targets due to the PPI scandal.

Can someone point me to an era when banks rewarded their existing customers more than they do today (factoring in the Bank of England base rate)? If not, stop complaining. The only way that you'll ensure banks offer better deals is by regularly switching your bank account and ensuring their is sufficient competition in the market.

Go further back in time. Not so recently.

People complain but there are accounts that exist now:

https://www.lloydsbank.com/current-accounts/all-accounts/club-lloyds.html