Might change banks.. But to who????

bradders33 · 5 November 2003 at 1:23PM

I have banked with Halifax for about 8 or 9 years and have had 2 current a/c's, 2 websaver a/c's, an ISA, a credit card, a loan, car insurance and mortgage off of them. (Mortgage and car insurance were most competitive at the time.)

I have recently moved my loan to Cahoot and my credit card to Egg.. But to be honest over the past few years the service I have received from Halifax has got worse and worse and I am getting to the end of my tether and think I may change... But to whom?

I am worried about the hassle with the D/D's and bills. Plus I do like the fact that they have 24hr telephone and internet banking, plus I have an Xtra's a/c which means I get free Green Flag and holiday insurance...

It's such a minefield.. Any suggestions?

westernpromise · 5 November 2003 at 5:08PM

The best current account deal going is Lloyds TSB. If you sign up before Dec 31, you get 4.2% on current a/c balances up to £5,000 and an interest-free overdraft until 12/2004 equal to your existing current account overdraft. Both are guaranteed till 12/2004.

There is a catch requiring some management. To get the above, you have to log in to their internet banking 6 times in 3 months, and also pay in either £1,000 or £2,000 a month. Depending on what you pay in, the interest rate on positive balances changes, falling potentially to 0.1% if you pay nothing in.

Most importantly, if you don't pay enough in, the overdraft rate rises to 17.9% - for the whole month. The latter is what needs to be watched. If you had an overdraft of say £1,000 and you were at the limit, and you failed to pay in £2,000 (eg late payday that month), they'd then charge you ~£15 in interest. As well as being extortionate in itself, this would take you into unauthorised overdraft territory, triggering a higher rate still and no doubt a series of gratuitous letters at £25 a pop telling you you've exceeded your limit.

If you're in credit and you fail to pay in £2,000, it's less acute. You lose interest, but only if you leave your money in LTSB. If that happens, you could always transfer it into a deposit account for the rest of the month, where you will get interest. This is actually what I do now anyway to improve on Nationwide's 2% rate.

I'm thinking of switching to LTSB because I'd like to blag that interest-free overdraft. As far as I know, if there is no account activity, there are no charges. So if one applies before Dec 31, you effectively get a free option on the overdraft.

If you then decide to use it, you could keep your existing current account as the main one. Simply transfer £2,000 into LTSB each month and then instantly transfer it back again. I've just checked at their branch in Chancery Lane and this counts as a qualifying transaction.

Either way it may be a good idea to run both current accounts simultaneously until you trust the new one, whoever you pick.

mistral_2 · 9 November 2003 at 11:40AM

Can I suggest a different route .
The Lloyds one horrifies me with the potential pitfalls.
They are not a good bank ,and have failed to move with the times as have most of the major high street banks.
This seems to be a bank who wants to trap customers back into a debt cycle when you mismanage the terms and conditions.
They will also try and sell you everything else under the sun which you do not need.
I personally bank with First Direct online and have they have been fantastic.
You can the move money as you see fit by direct transfer to ING or bleed it back into ironically a Halifax Monthly savers Account which is a consistently high payer.
You do however loose a few days interest
Just another view.
I do like simplicity in finance to a certain extend , life is so busy in other areas.

mollymalone · 7 November 2004 at 4:38PM

I have received a mailshot from royal bank of scotland offering £50 when credit some money into a current account with them. No mention of having to have salary paid in, or transferring direct debits etc. is this an opportunity to bag £50 for crediting just £10 to the account?

???

???
I am new to all this but have started reading some of the chat forums and think why not?
Has anyone else seen this? Is there a catch? ??? ???
Molly Malone

deemy2004 · 7 November 2004 at 6:17PM

Halifax

Youve got your websaver for immediate savings
I think 3% on current account.
Theres no delay between transfering between halifax accounts
So a a s/o to the monthly saver, gets transacted on the same day as the s/o so no loss of interest in transit

MarkyMarkD · 8 November 2004 at 12:13AM

A&L's rates are better than Halifax's for current accounts and savings. Instant transfers between the two as well.

AND Halifax are dropping their free travel insurance whereas A&L are keeping theirs.

https://www.alliance-leicester.co.uk says more.

pin · 8 November 2004 at 12:56PM

For good cust services it seems many people here like First Direct. Also I think they give you £25 if you switch bank accounts. I believe they have internet banking and 24 telephone support.

As for switching DD's, etc. Its is quite straightforward, but a lengthy process. I've recently switched from HSBC to Nationwide (who, incidentaly are not too bad).

Contact the bank you want to join, telling them you want to switch accounts. They will ask for details of the old bank, they contact the old bank to obtain your DD's, SO's, etc. You check through the list. The new bank contacts all the people on the list to change the details. Whole process took about 7 weeks in my case.

However one DD was missed, but a few quick phone calls and all was sorted.

johnllew · 8 November 2004 at 1:15PM

According to Which? magazine, Smile has the best customer satisfaction rating and is a Best Buy. I've used them for over 4 years and find them excellent.

You can get 6 free bottles of wine by joining Smile via this link before the 30th November.

When changing banks, I always handle the movement of DDs and standing orders myself. You're supposed to be able to hand it over to the banks, but I prefer to be in control. Always leave a reasonable buffer in the old account just in case something goes wrong; you don't want to be stung for charges.

Why not keep the Halifax Extra for the free breakdown service? Just do what's necessary to keep the account live; if it's a minimum deposit per month just arrange standing orders in and out again at the beginning of each month. I rarely cancel an old bank account unless it's going to cost me; you never know when it might be useful.

You already have a Cahoot loan. If you'd like your finances in one place, why not open a current account with them? They have very good rates but the customer service is pants. Depends what you're prepared to put up with; most of the time Cahoot should be fine but it's when a problem crops up that they're lacking.

johnllew · 8 November 2004 at 1:17PM

Oh, and IIWY, I'd stay clear of Lloyds TSB, they're awful.

fiobee · 9 November 2004 at 2:34PM

I second the recommendation for Smile. As the OP's main concern with Halifax (HBOS) appears to be customer service, then Smile has to be a top alternative. I bank with them and have nothing bad to say.

Fatboy_NSS · 9 November 2004 at 8:44PM

It's all very well going for Smile as people recommend, but if you want your account to come with roadside assistance and travel insurance then it's not going to be the right account for you. Some questions to think about:

Are you happy with exclusively internet/phone/post banking, or would you prefer branches as well?
How much is getting free breakdown/travel insurance worth? (ie are the accounts offering these deals worthwhile or would it be better to buy them separately)
Are you usually in credit or do you go overdrawn? (even if you're only overdrawn a couple days a month the overdraft interest rate will be far more important than the in credit rate).

Once you've decided what you want from your account and what you don't really need, go to one of the impartial comparison sites to see who offers the best deal for you.

Might change banks.. But to who????

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