Caution! All those switching to the A&L, Halifax deals etc

dbuk44

Hi - couldn't find this posted anywhere else so here goes.

Martins article on switching bank accounts to take account of offers clearly highlights the obvious benefits. However, it doesnt compare apples to apples.

I would suggest it also needs to describe to people the differences between entities like A&L and banks like Barclays.

For example, did you know that you are unable to pay a barclaycard bill over the A&L counter? Its not a clearing bank (in fact they direct you back to barclays who will refuse to accept payment over £300 from your A&L card without a passport). I got caught out with this one last week.

Has anyone listed out the difference between the two? Are there any more "catches" to be aware of?
So you might get 50 quid signup and a great interest rate... but at what cost in service?

grumbler

dbuk44 wrote:

Martins article on switching bank accounts to take account of offers clearly highlights the obvious benefits. However, it doesnt compare apples to apples.

For many banks (including A&L) there is no need to switch. You can just open a new account and keep the old one.

For example, did you know that you are unable to pay a barclaycard bill over the A&L counter?

I don't think that a lot of people pay credit card bills over a counter now. Especially among MSE members and visitors who obviously have internet access. Paying your Barclaycard bill online with your debit card is very easy - 1 minute maximum. Let alone using DD.

So you might get 50 quid signup and a great interest rate... but at what cost in service?

Not £50, but £75 end even £105. To earn £105 you must keep £3000 a whole year on Barclays e-savings account (if you are a basic rate taxpayer).
What service? I have both Barclays and A&L accounts and I don't remember when I visited their branches last time. I think for A&L it was only when I was opening the account. You can do almost everything you need online. I don't like A&L online banking, but I have free worldwide travel insurance for this small hassle ...

M_Thomson

dbuk44 wrote:

Hi - couldn't find this posted anywhere else so here goes.

Martins article on switching bank accounts to take account of offers clearly highlights the obvious benefits. However, it doesnt compare apples to apples.

I would suggest it also needs to describe to people the differences between entities like A&L and banks like Barclays.

For example, did you know that you are unable to pay a barclaycard bill over the A&L counter? Its not a clearing bank (in fact they direct you back to barclays who will refuse to accept payment over £300 from your A&L card without a passport). I got caught out with this one last week.

Has anyone listed out the difference between the two? Are there any more "catches" to be aware of?
So you might get 50 quid signup and a great interest rate... but at what cost in service?

Why do you need to pay a bill over the counter? You obviously have a PC so can you not do it online??

dbuk44

Yeah good comments :T -- note I wasnt suggesting not to take up the offers, just to take caution (see title) and investigate!

The question I posed - "What other differences are there?" remains open if anyone else has found any.

BTW, Yes - I do pay my barclaycard bill via direct debit. The A&L switching service was too slow... and when using a brand new debit card with Barclaycard you can only pay £100 the first time around.

No direct debit, 100 limit on A&L card = try to pay by cash at branch.

Oh, and whilst this may be true...

For many banks (including A&L) there is no need to switch. You can just open a new account and keep the old one.

folks might wish to consider the impact of this clause found in the T&C:

"We expect you to use your account on a regular basis. We reserve the right to charge a monthly account maintenance charge should your account be inactive for a period exceeding 30 days."

MarkyMarkD

I think the point there, dbuk, is that if you really have to be able to pay bills over the counter, you can keep your Barclays account for that purpose, whilst using the Halifax or A&L account as your main account.

You are right to draw attention to the fact that there are some things which either can't be done, or aren't as easy, with the "new" banks as the old clearing banks. But they are things which can be easily worked around and for many people, it's worth the effort for the improved interest rate and other benefits.

I haven't paid a bill over the bank counter in 15 years and I can't see why I'd ever need to do so, when I can pay anything I want online without leaving my comfy chair!

You don't have to pay online using Barclaycard's debit card processing method; you can pay by BACS from any internet banking service and there's no financial limit for doing so. I've also paid other cards by debit card, and not come across any with a limit like Barclays' £100.