Loyalty - does it have a place?

martinpike

Rafter wrote:

I'm still a bit bemused as to why someone like nationwide who offers consistently better rates than the big banks still has a much smaller market share - huge inertia I guess.

I was a long standing Nationwide customer until I refinanced a year ago. I'm now with First Direct, partly because I like their offsetting arrangement, but mostly because their Standard Variable Rate is consistently the lowest around.

CopperPlate_2

As you said Rafter NW offered good rates a couple of years ago. I took advantage and re-mortgaged with them (I think the fee was about £90 at the time) but when I tried this time around I was going to be stung for around £400 AND they had added a penalty of £90 into the bargain if I decided to leave them. I was really disappointed as NW had been decent to deal with. I'm not sure I agree with their ethos about treating existing customers the same as new ones - where does that foster loyalty to stay since their rates are now comparable with BS's. All in all, if you are saving yourself £400 straight off and potentially paying the same for the mortgage, it's a no-brainer to stay and have to pay for the same deal with NW.

Rant over

MSE_Martin

The initial question I believe confuses two issues - loyalty and stability.

Stability can be important, in many of the things I write about I talk about a stable relationship solution. Yet loyalty has no place, it is an emotional reaction to a clinical position. The question to ask is how much am i losing by being with this institution in comparison to the better rates of another, and is the service and additional benefits i get for being with that company balanced by it?

martin

Haynonnie

Thank you to everyone who has replied.

Yes, I'm easily confused so Martin is probably right, and maybe I have got my loyalty mixed up with the stability I require in an otherwise very unstable lifestyle.

I am, however, human and I do like interacting with other human beings. I find it encouraging that my NatWest branch (and it is a large and very busy city centre branch) seems to have a low turnover of staff and they do seem genuinely to enjoy their jobs. It is a pleasure to bank there.

There is never a surplus of money in my account, just enough to cover direct debits, and I do not use any of NatWest's other products as they are most certainly not competitive so I wouldn't say that they are able to "milk" me in any way. I hold my current account there, that's all, and it is managed very well. It is nice being able to ring the branch direct, which is something a lot of other banks don't do. I can manage my account online when I need to. OK so I don't earn interest on my balance but neither does it cost me anything for what I consider to be an excellent service.

I've still confused myself as to whether I'm talking about stability or loyalty. NatWest would probably say I'm not "loyal" because I don't buy my insurance from them or take out a loan with them. So maybe it is just a "stable relationship".

Perhaps I should break out and become a tart!!! Sounds like fun!! But then maybe I'm too emotional !!

CopperPlate_2

Just count yourself as one of the lucky ones having a bank branch nearby that hasn't been closed, relocated or merged out of existence with another one "in your local area" 10 miles away (as per the trite phrase that's rolled out when banks do their 'rationalisations'). To be honest, if I never had to go into a bank again, I'd not be bothered. It's getting that way when you go into supermarkets with them trying to plug every bit of supermarket banking junk they can - credit card, charge card, personal loans - ALL I WANT IS A PINT OF MILK!!

Nuff said.

CP