Current Account for Widowed Pensioner

Razoo

I'm trying to help an elderly neighbour (lady, widowed, aged 83) open a new current account with ideally a high-interest linked savings account because her exisiting Portman savings account with chequebook is being closed by Nationwide, following the recent takeover. She insists she needs a chequebook and she doesn't have a computer (nor does she want one!). She also wants to be able to visit a branch if/when there's a problem (although I might try to talk her out of that requirement). She also has a requirement for standing orders & direct debits.

Unfortunately, all the best current accounts seem to need a regular monthly deposit of £1,000 in order to earn more than a 0.1% pittance on the in-credit balance. Her monthly credit would be the standard state pension, plus a small private pension (total around £520). I think A&L set their threshold at £500/month, but there's no branch and their call centre wins no prizes.

My choices seem very limited: Abbey, Halifax, Nationwide's own current account, maybe RBOS. It would be good to choose an account with Internet access, so I can set up SOs & DDs, etc. online for her.

Does anyone have any suggestions? Does any bank offer pensioners a current account that pays a reasonable interest on the cleared in-credit balance regardless of monthly credits?

TIA

Razoo

sloughflint

Would she be happy with savings accounts that allow phone access to transfer to a current account?
Doesn't answer your question re CA but a thought.

Even better though:
Would she be happy using phonebank for a current account? In which case, what about A&L which allows post office use too if no branch in your town?
Currently 8.5 % on first £2500 if fund with £500 each month. Linked plus saver account earns 5.25%.
http://www.alliance-leicester.co.uk/current-accounts/premier-direct-current-account.aspx?ct=caseSecondaryLeftpremdirect

sloughflint

I realise you've discounted A&L. Worth reconsidering in view of Post Office transactions?
http://www.postoffice.co.uk/portal/po/content1?catId=19100194&mediaId=19500195

sloughflint

If you are not keen on the quality of A&L call centre, how about LTSB instead?

• branch,phone and post office access
• full Post office banking facility ( meaning if she forgot her PIN, she could write a cheque to herself and cash it in)....this is more than A&L does
• Easy Saver account offering only 3.5% on savings ( as opposed to the internet saver) but allows phonebank
• the classic plus current account offers 6% on £2500 for a year ( extra 2% bonus) as long as £1000 per month is fed in ( I believe a transfer/ or several small ones from the savings account and back again would satisfy the funding requirement)

If you are interested, I would double check what I've written in bold over in the budgeting section since I am only writing this from memory.

sloughflint

Razoo wrote: »

It would be good to choose an account with Internet access, so I can set up SOs & DDs, etc. online for her.

May I try to discourage you here? Not even being an extra signatory on the account gives you entitlement for internet access; only Power of Attorney does.

You are being very kind towards your neighbour but please look after yourself here. What if the lady became more and more confused, lost money and through no fault of her own started accusing you of theft?
What if relatives who don't live nearby ( who can't help like you can being next door) then got wind of the accusations and delved a bit deeper? I'm sure you've got the picture.

Razoo

sloughflint wrote: »

May I try to discourage you here? Not even being an extra signatory on the account gives you entitlement for internet access; only Power of Attorney does.

You are being very kind towards your neighbour but please look after yourself here. <snip> quote]

Thanks for the advice - I had considered the potential consequences. The lady is mentally adroit (amazingly so, considering her age) and I had intended to only access her account whilst she was sat with me. The intention is, she would know her password, I would not. Basically, she would be borrowing my computer and Internet access, rather than upsetting "Golden" Brown by driving into town to visit the bank branch. Her eyesight is not so good (another reason why she shouldn't drive into town), so I would have to bash the QWERTY on her behalf! Unfortunately there is no one else who can (or will) help her. I have taken the precaution of keeping her relatives apprised, but they live miles away and don't seem inclined to get involved.

Razoo

Razoo

sloughflint wrote: »

I realise you've discounted A&L. Worth reconsidering in view of Post Office transactions?

Thanks, I had forgotten about the facility of PO transactions for A&L accounts. That could make the difference and certainly A&L seems to offer a good interest rate on the current account in-credit balance. It also seems that the £500/month credit requirement can be met without juggling savings. There is still a very handy village Post Office right on our doorstep (but for how long, I wonder?).

Razoo

sloughflint

I agree that the A&L is probably best as far as rates go ( both the current and linked saver).

I have never used the call centre but that requires remembering a four digit number.

The only disadvantage I see is that A&L don't offer Post Office cheque cashing facility but as long as your neighbour can remember a PIN, that shouldn't be a problem.

What a nice neighbour you are. She's a fortunate lady in that respect.

margaretclare

I think what this lady is looking for is what might be called 'old-fashioned banking'. There are many banks offering current accounts where you can still get this face-to-face service, and all offer a cheque-book plus D/Ds and standing orders. The difficulty is that these do NOT offer a savings facility as well. It's either/or. A&L may be the best bet.

FWIW I don't think it's worth setting up online facilities that she doesn't want and won't use - that will commit you to a lot, and may possibly reduce her feeling of independence.

Why shouldn't she be mentally adroit, age or no age? I've listened to recordings of 'living history', people of that age-group, and they were certainly as 'mentally adroit' as you could wish! I've also heard them on 'Woman's Hour', very very old ladies, well worth hearing.

sloughflint

Razoo, just be aware that that A&L current account's interest rate reverts to BOE minus 1% after a year.

Why shouldn't she be mentally adroit, age or no age?

Probably statistics dictate people's perceptions.
I don't know the exact statistics but I guess many people,myself included, would think that a person such as you described in your post is highly fortunate to be mentally or physically adroit or both and would hope to be the same at that age.
Agreed. Well worth hearing.

missile

Rather than looking for the highest interest rate accounts, I would search out a local Bank / Building Society branch where the staff are helpful and considerate to the older customers. Unfortunately (in my experience) most are not.

RBS current account comes with cheque book and can be linked to an instant savings account, so that when the balance goes above (say £100) excess is auto transferred to saver and vice versa when balance goes below zero. However, savings rate is not very good.

I think she may be able to manage far better than you think. At 86, my dear mum manages her current, ISAs and savings accounts at the Nationwide with no problem.