money saving in the middle of nowhere

warnski

Just looking for some opinions here...

I live in a fairly remote market town where the only bank I can conveniently access is HSBC. I currently have a current account, credit card (but no outstanding debt) and ISA with HSBC, but I realise there are far better paying ISAs etc available elsewhere.

I'm already planning to seek out a different credit card provider after reading The Money Diet, and start earning some cash back from credit card spending.

Am I stuck with my HSBC ISA and current account, or is it safe to start using higher interest online services?

Opiions and advice welcome. Thamks!

carpetbelly

Personally, I'd still keep the HSBC account, having a branch around is handy but I would definately seek out online alternatives.

Online banking is brilliant and generally pretty safe even for people that aren't that internet savvy. A lot of companies also have good phone services. There's not many reasons to need a branch now adays but handy to keep the account, just in case.

Voyager2002

I have been doing all my banking on-line since about the year 2000, and have never lost so much as a penny. So yes, I think it is safe. And so much easier and more convenient than dealing with physical banks, who have given me some spectacular problems in the past.

Oh: most of my ISAs are with Ruffler Bank, who offered a high interest rate last time I looked but do not have a full on-line service. And I do have some money in a Barclays 'tax-beater' ISA, which is not really an on-line product. Interest rate is not bad, but I had enormous hassles setting it up with the physical bank, so really it was not worth the trouble.

Primrose

I think it's good advice to keep your current account at HSBC simply for the convenience of having a local bank but once you get used to internet banking/saving it's so convenient that you might find you rarely need to use your bank. Icesave offer an excellent on-line ISA as well as a savings account which are simple to use. As long as you have good security protection on your computer I don't think you should worry about safety.

Voyager2002

Primrose wrote: »

. As long as you have good security protection on your computer I don't think you should worry about safety.

The main thing is to exercise common sense: I do on-line banking from cyber cafes in all sorts of strange places (India, China, Vietnam...) and most of those computers will suffer from some kind of spyware. However, the security systems used by the major on-line banks are robust, and few criminals have the technical knowledge required to break in to your account, even if they have collected a few clues from your use of an infected computer.

I have only heard of one case where it appeared that money was stolen in this way. The bank eventually refunded the funds that had been lost, however I understand that the criminals obtained the victim's password by means of 'phishing' and so exploited his stupidity rather than employing a hi-tec method. Of course he did not tell the bank this.

margaretclare

Can I add to this - DH and I have been doing internet banking for about 10 years now with no problems at all.

However, it may be convenient to keep your 'local bank, on the rare occasions when you have to visit a branch.

HTH

Margaret

carpetbelly

Voyager2002 wrote: »

The main thing is to exercise common sense:

It's so surprising how many people can fail to do this though...

Ellidee

First Direct . We have used them for over 10 years and would heartily recommend them.They are part of HSBC so you can stil use their branches if you need to pay in but the rest of your transactions can be done over the phone or online. Fantastic service.

warnski

thanks everybody. I won't close my current account, but will certainly look for better online alternatives.