don't change bank account?

caroline1973lefty

hi all, i was just wondering whether anyone out there agreed with me that it is not neccessarily a good idea to change bank account, even if there are some differences in interest rates, fees etc? I know it goes against all Martin's advice, but i am wondering... I have come close several times but have always shied away from it in the end, remembering my mother (who struggled financially throughout my childhood). She changed her bank account when fed up with her old bank, and i remember her telling me that she felt it had been a real mistake cos her new bank was even less helpful as she had no history with them.

My own credit rating is less than perfect, and I've been turned down for credit cards and 'premium' type bank accounts in the past (eg Egg, Alliance and Leicester). But because I've been with my bank (NatWest) forever, and currently have a regular income, it has been easy to get overdraft extensions, credit cards, and loans off of them. Too easy in fact, though i ignore their irresponsibly huge loan offer letters nowadays.

Also i think that a lot of the special deals that the banks offer vanish pretty quickly anyway, or never materialise, or aren't really worth that much unless you have a massive amount of credit or debt - neither of which should be in your current account, anyway. Lastly though i'm happy to do most things online, i'm a bit nervy about going internet only with all my hard earned cash!

Anyone else agree that sticking with your current bank is worth it? Actually it slightly pains me to say this cos i wish i was with the Co-op for ethical reasons... and i don't have any particular drum to bang for NatWest (apart from that they repaid me over £1000 in unfair bank charges, the full whack :j- thanks MSE!!!).

I still quite fancy setting up a Co-op account, mind. Anyone have any experience of keeping a long standing bank account and setting up another one to have wages transferred straight into from that account, and to do most of your transations out of? I am not sure if i can be bothered to do this and wonder if it would damage my standing with NatWest or even resulting in them taking my account away?

robpw2

again with all advice its down to the individal what is best I have been with halifax for ten years and have been complacent i have decided to finally to make a change and appear now to be better off

skyrider007

I think it's good to establish a long and steady relationship with your bank. Overtime, they'll offer you access to better interest rates as they view you as a trustworthy client. However, if your current bank fails to deliver the same benefits which you could get by switching to a rival bank - then I see no reason to hesitate and would switch without doubt. At the end of the day, more money (interest) or less interest on loans is the key in determining where you money lives.

simongregson

skyrider007 wrote: »

I think it's good to establish a long and steady relationship with your bank. Overtime, they'll offer you access to better interest rates as they view you as a trustworthy client.

Why? What benefit is this to them? You are already a customer, not likely to switch, they will pay you the least they can get away with.

Currently First Direct are offering£100 for every new customer. By your logic, they should be offering it to their existing customers...

YorkshireBoy

simongregson wrote: »

Why? What benefit is this to them? You are already a customer, not likely to switch, they will pay you the least they can get away with.

I think skyrider007 may have been referring to debit interest rates and credit facility charges.

For example, with my longest held (nearly 30 years) current account, I have sub 10% rates on large overdraft and credit card facilities...both unused.

Their 'in credit' rates are terrible though, and that's why I have no more than one months DD coverage there at any one time.

[Deleted User]

caroline1973lefty wrote: »

Anyone else agree that sticking with your current bank is worth it?

I dont know if I think it's worth it but I agree with you 100% re the relationship with my bank.

I'm with Abbey, wished I was with Barclays or First Direct.
Have asked for applications but can't get myself to fill them in.

Mikeyorks

caroline1973lefty wrote: »

Anyone else agree that sticking with your current bank is worth it?

As long as it's a well considered and financially beneficial decision .... and not simply the product of inertia or being trapped by an overdraft etc?

I've had a Halifax current account for years. Used to run it at virtually zero balance (with an agreed overdraft to cover the possibility of the odd 'oops') .. and move money in from a much higher interest account as needed. But since they produced the 6.17% high interest account I've found it beneficial to do the opposite ... and keep up to £2.5k in that ... with commensurately less in the instant access.

But as soon as 'faster payments' arrives at end May (?) any, of the little, remaining 'instant access' funds remaining within Halifax will be on it's way elsewhere .... unless they dramatically reverse the significant recent dips on their Web based rates.

So you can sometimes make it 'worth it' to stick. So long as it's a worked solution that suits you .. and your pocket?

Meltdown_2

I have current accounts with quite a few banks. The main reason is that I moved around a lot and opened current accounts at banks that had branches that were convenient for me - this was in the old days pre-online!
I also opened savings accounts with a number of building societies (again largely based on convenience of branches) and as one or two of these have "converted" I've taken up the current account option with them.

I don't remember ever actually withdrawing completely from a bank/BS - though some of course are no more!
I have closed savings accounts (when they play the usual trick of lowering interest rates on long-standing accounts) but do a switch to a better-paying account at the same place first, and then transfer the vast bulk elsewhere if need be. (Yep, leaving £100 in BS accounts ... )
Some of my current accounts get very little use (and in some cases no interest) but they don't actually cost me anything. They have little in the way of balances, so the opportunity lost for interest elsewhere is not large.

All this gives me ready access to online banking at various places, reduces the need for ID-check hassles (usually), and allows me to use a wide variety of branches, ATMs, etc.
For me, this works. For others, it might not ...

What I would say, though (and this could account for conflicting views sometimes) is that you can have a lot of difference between different branches of the same bank. Some of that seems to be down to the managers, and the nature of the training they ensure for their staff. But as has been said elsewhere, you can also get good and bad staff working side by side in the same branch. It's all a bit of "pot luck".

Boudica

Please DO NOT get a co-op account. I changed to them from First Direct and i'm sorry that I did. I have had nothing but problems with them from day one. I've had my account hacked into, payments taken out on days they shouldn't have been, totally unhelpful staff. The account wasn't set up properly and this led to missing payments and my credit score has plummeted, despite it not being my fault. It was all they're incompetance that has caused this.

They have now taken my overdraft facility away from me because i've used it!!!! They only give an overdraft for one year but I was never told they would do this when opening the account. I can't wait to pay the overdraft back and get out.

I was with First Direct for 10 years and never had a problem and would go back to them anytime.

tilly972

I used to think that I got a really good deal with Bank of Scotland as had been a customer with them since I was 15 - got to go into the bank and chat to the bank manager like he was my friend - I know it was still business but it made it seem so much more personal than now and at least they knew who you were. Now it seems they couldn't care less who you are - they just want to make money out of you!!