How much does your bank balance impact how the bank treat you?

Rollinghome

Section62 said:

Lloyds rejected my application for a credit card while I was living off savings for a period of time.  They told me they could only make the decision based on income, excluding income from savings and investments.  With zero income from employment, pension, or benefits they couldn't be confident I'd be able to keep up with payments on the card.  I pointed out my (at the time) 5-figure savings with LBG - they said that wasn't relevant. (Which I fully understood)

...that hasn't stopped Lloyds, BoS and Halifax continuing to send me begging letters pleading with me to apply for a credit card, despite my savings balance with LBG dropping down to just what the RS accounts hold at any given time.

That's interesting if unsurprising but seems short-sighted.  I have seen current account applications that do specifically ask for both earned/pension income, and for income from savings/investments, so policies seem to vary

On the other hand, I went into a Lloyds branch yonks ago to open a cash ISA and was asked my income.  I asked whether that should include investment income and if so, whether they wanted this year's, last year's or a projection for next year, and on a good, bad or average scenario.  They decided to use the highest figure I mentioned.  

I assume that information had no relevance to a savings account, but they were happy enough to have it when it might lead to flogging me something.

Aminatidi

That's kind of my point above though.

I don't know if Lloyds think "he's got £20K in a savings account with us so we can see he's sensible" or if that doesn't even come into it with things like credit card limits and if it's all about income and credit score.

I know I have 999/999 on Experian and the card is set to pay in full on direct debit automatically but you do hear some horror stories about credit card limits being arbitrarily pulled or cut etc.

GeoffTF

Aminatidi said:

I don't know if Lloyds think "he's got £20K in a savings account with us so we can see he's sensible"...

It is more likely that they think "he's got £20K in a savings account with us so we can see he's a sucker". Actually, I do not expect that they think about you at all.

Aminatidi

Ha I don't expect they do either.

By "think" I obviously mean some computer algorithm decides to reduce my credit card limit in the middle of the night because I took my savings account elsewhere so I don't have as much money with them etc.

DullGreyGuy

Section62 said:

DullGreyGuy said:

Explicitly to your question on card limits, these are set based on risk criteria. They wont immediately drop your limit in revenge for you moving your money away but its inevitable that with less sight  of savings they may consider you slightly more risky but that doesn't mean its sufficient to drop your limit. I have a £20k+ limit with Virgin on a credit card and dont think I've ever held any other product with them 

I suspect - if anything - the opposite might be the case.  If they do have a system which monitors savings then the algorithm may be set up to identify customers with dwindling savings balances as potentially ideal candidates for more (to them money earning) debt-related products.

Lloyds rejected my application for a credit card while I was living off savings for a period of time.  They told me they could only make the decision based on income, excluding income from savings and investments.  With zero income from employment, pension, or benefits they couldn't be confident I'd be able to keep up with payments on the card.  I pointed out my (at the time) 5-figure savings with LBG - they said that wasn't relevant. (Which I fully understood)

...that hasn't stopped Lloyds, BoS and Halifax continuing to send me begging letters pleading with me to apply for a credit card, despite my savings balance with LBG dropping down to just what the RS accounts hold at any given time.

OP - find a better home for your £20k today.

Living off savings has two possible means:

• You're receiving the interest/dividend, living off that and the underlying capital is static or growing
• You're withdrawing the underlying capital itself

If its the later then clearly you are higher risk as you have finite resources and so its ultimately unsustainable. If its the former then many banks would be very welcoming of those that are living on "independent means"

Rollinghome

Now that there aren't many/any attractive cashback deals on CCs, I rarely use one. Pretty much everything goes on my Chase debit card now - other than household bills that those nice people at Santander Lite pay their 123 cashback on, and for stuff like insurance that Chase don't cashback pay on.

Counter-intuitively, I find it simpler to pay by DC as I go than having to remember to fund an account for when the CC bill hits. I tend to verge on obsessive about avoiding dead-money. Possibly, the most useful aspect of CCs is improving your score for credit-ratings, which, as I'm not in the market for credit, I'm not too interested in.

Albermarle

subjecttocontract said:

I have hundreds of thousands saved and invested but it ain't in any bank account earning didly squat. None of the banks that I hold an account with have any idea what I'm worth. My main account will recognise through my money transfers that there are large balances involved and as a result they seem to be offering me all sorts of things like private banking & loans at preferential rates.

Although there can be some unexpected surprises. Such as having a Halifax credit card and finding my Scottish Widows pension pot visible in the Halifax app !

Rollinghome

Albermarle said:

subjecttocontract said:

I have hundreds of thousands saved and invested but it ain't in any bank account earning didly squat. None of the banks that I hold an account with have any idea what I'm worth. My main account will recognise through my money transfers that there are large balances involved and as a result they seem to be offering me all sorts of things like private banking & loans at preferential rates.

Although there can be some unexpected surprises. Such as having a Halifax credit card and finding my Scottish Widows pension pot visible in the Halifax app !

All seems a bit capricious.  I've a Halifax current that shows every old BOS account, but not Lloyds. No sign of Iweb in any of them.

LHW99

Recommendations welcome on who's actually a decent place for savings in so much as not offering "carrot" rates then dropping them and making it easy to open an account and withdraw money.

I have found RCI and Aldermore generally up the rates on the non-fixed accounts fairly soon on a base rate rise. Neither exactly high street names, but FCA regulated and reasonably efficient.

Albermarle

LHW99 said:

Recommendations welcome on who's actually a decent place for savings in so much as not offering "carrot" rates then dropping them and making it easy to open an account and withdraw money.

I have found RCI and Aldermore generally up the rates on the non-fixed accounts fairly soon on a base rate rise. Neither exactly high street names, but FCA regulated and reasonably efficient.

You can add Ford Money to those two as well.