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  • Dave2002
    Full Member
    • Dec 2010
    • 18052

    Banks

    I continue to be "concerned" by the behaviour of the banks. I'm not concerned about the fact tha they appear to have caused major disturbances in economics in recent years, but more by the way that they treat some savers, many of whom are older and often not able to "look after" their finances as sharply as some younger people might. Having said that though, I would advise many to be very careful about asking other "financial advisors" to "look after" your money, as there is a definite possibility that they will optimise their finances at the expense of yours.

    One thing which is really annoying is the "need" to keep tweaking accounts to make sure that interest rates are not down in the 0.05% range. To my mind this need, which we are reminded about by programmes such as R4's Money Box, is simply a way for banks to hope that we'll all forget the interest rates after a year or so. They are I fear often right. My mother did for years, though I did eventually manage to get her one year at a decent rate before it became irrelevant.

    Another scam is if one is fortunate to be able to have a sufficiently large sum to be able to achieve significant income from interest (this could be a temporary state, for example when selling/buying houses) banks may misrepresent their accounts, and neglect to tell customers that an interest bearing account has an upper limit for interest purposes - which might be £100k - this even if specifically asked. The result might be a considerably lower income from savings than expected, yet later the bank will probably assert that it wasn't their fault.

    Yesterday I tried to get the paltry interest rate on one of my accounts upgraded back to 2% - from 0.05, and was told that could be done. All seemed to be going well and the counter lady filled in a form and asked me to sign it. Then she told me it wouldn't be processed until next Wednesday, as the man who keys in the data wasn't coming in until then!

    As a reult of this I moved a significant sum to another bank a few doors away, where the account is already offering 3%, and I believe I may already have "earned" a cup of coffee by this process.

    I'm not particularly in favour of "unearned" income by the way, but equally I'm not in favour of banks or other organisations expecting us to work when we are able to, and then ripping savers off later when there might be reasonable expectations of at least a small income from savings interest.
  • teamsaint
    Full Member
    • Nov 2010
    • 25235

    #2
    The banks have proved conclusively in recent years, if it was ever in doubt, that not only are they out to take every penny that they can, but that they have the governments of Europe and America well and truly in their pockets.
    Savers do indeed get some very shoddy treatment, as do borrowers, current account customers and so on.
    I think its a good idea to look at their behaviour overall. Their causing of wholesale problems in our economy are a result of exactly the same greed that led to sub prime mortgages being oversold, that leads to dubious investments elsewhere, and that keeps interest rates on overdrafts at nearly 20% when BoE rate is 0.5%, as well as derisory rates and poor service(at best) for savers.
    All the same thing.
    Glad you found some acceptable rates, and hopefully somebody decent to deal with.
    I will not be pushed, filed, stamped, indexed, briefed, debriefed or numbered. My life is my own.

    I am not a number, I am a free man.

    Comment

    • Resurrection Man

      #3
      Originally posted by teamsaint View Post
      ....
      Savers do indeed get some very shoddy treatment, as do borrowers, current account customers and so on.
      ....
      I'm curious as to why you think that? I know we get nothing in interest on any surplus that we hold in the current account but that is a simple job to move any spare funds (hollow laugh) temporarily to a slightly better interest-bearing savings account. For the trivial amount of money I have in my current account, I get free banking. Seems like a good deal to me.

      Comment

      • amateur51

        #4
        Originally posted by Resurrection Man View Post
        I'm curious as to why you think that? I know we get nothing in interest on any surplus that we hold in the current account but that is a simple job to move any spare funds (hollow laugh) temporarily to a slightly better interest-bearing savings account. For the trivial amount of money I have in my current account, I get free banking. Seems like a good deal to me.
        Yes I believe the CEOs, Chairmen and shareholders think so too

        Though it won't stop them from trying to charge us in the future

        Comment

        • Eine Alpensinfonie
          Host
          • Nov 2010
          • 20576

          #5
          And I thought we were going to be talking about that still-half-good music shop in York.

          However, as we are not, I would like to mention the really nasty computer-generated letters from the Halifax, almost gloating as they tell you how bad you have been for going overdrawn for half an hour, and how you are to be punished by them for your wickedness, by hugely disproportionate punitive charges.

          Comment

          • Dave2002
            Full Member
            • Dec 2010
            • 18052

            #6
            ts

            I haven't actually shifted banks, but simply moved money between banks which I already belong to. I thought it was worth it even for just a few cups of coffee. It was suggested that I drive to Epsom, if I wanted the changes made sooner but I didn't want to go there, and it would probably have cost more in petrol and time than it would have been worth anyway.
            ... and that keeps interest rates on overdrafts at nearly 20% when BoE rate is 0.5%, as well as derisory rates and poor service(at best) for savers.
            I may even try Zopa, which has been pointed out before - http://uk.zopa.com/ Arguably it might give fairer rates for both savers and borrowers.

            I don't like most financial advisers, they mostly don't offer detailed advice, and take too much of a cut and take no responsibility.

            Comment

            • Dave2002
              Full Member
              • Dec 2010
              • 18052

              #7
              Originally posted by Eine Alpensinfonie View Post
              And I thought we were going to be talking about that still-half-good music shop in York.

              However, as we are not, I would like to mention the really nasty computer-generated letters from the Halifax, almost gloating as they tell you how bad you have been for going overdrawn for half an hour, and how you are to be punished by them for your wickedness, by hugely disproportionate punitive charges.
              Have you tried phoning them and negotiating? I don't know if you have problems frequently, but if they're infrequent it's surprising what a phone call or two will do. The charges can be made to disappear, or at least that has been my experience during the last five or so years, both personally and by observing and discussions with my friends and colleagues. It all depends whether the banks think you can afford to pay or not.

              If the HFX are not amenable to this, then try Santander or one of the others. I have accounts with several banks - HFX, Santander etc., so can play them off against each other. The HFX do seem to be going off the boil though - and yes, it was "them" that were going to take days to upgrade the rate on my saver account, so I walked down to Santander, where currently the 123 account seems good.

              Comment

              • Petrushka
                Full Member
                • Nov 2010
                • 12341

                #8
                Originally posted by Dave2002 View Post
                ...Santander...
                Spanish bank.
                "The sound is the handwriting of the conductor" - Bernard Haitink

                Comment

                • teamsaint
                  Full Member
                  • Nov 2010
                  • 25235

                  #9
                  Originally posted by Resurrection Man View Post
                  I'm curious as to why you think that? I know we get nothing in interest on any surplus that we hold in the current account but that is a simple job to move any spare funds (hollow laugh) temporarily to a slightly better interest-bearing savings account. For the trivial amount of money I have in my current account, I get free banking. Seems like a good deal to me.
                  As other have stated...Sky high interest rates on overdrafts, punitive fees for short term exceeding overdraft terms, zero interest on balances(i know this can be dealt with), hiding of counter staff upstairs and at back of branch...and its going to get worse when the government, sorry B o E led initiative to charge us all directly gets implemented.
                  For all that, current account holders who behave themselves probably do less badly than others in their dealings with the banks.I appreciate that current account holders, savers borrowers are often the same people, but you know what I mean.
                  FWIW, and I wouldn't recommend any bank really, I find that First Direct are helpful, convenient, and help me avoid internet banking which at this stage I don't trust.
                  I will not be pushed, filed, stamped, indexed, briefed, debriefed or numbered. My life is my own.

                  I am not a number, I am a free man.

                  Comment

                  • Dave2002
                    Full Member
                    • Dec 2010
                    • 18052

                    #10
                    Originally posted by teamsaint View Post
                    FWIW, and I wouldn't recommend any bank really, I find that First Direct are helpful, convenient, and help me avoid internet banking which at this stage I don't trust.
                    Do you buy off the internet? If so, then you might not find internet banking so bad. Obviously if you're worried, don't put all your funds into an internet account.
                    I have several accounts which I operate over the internet, though I still insist on paper statements - in case anything does go wrong.

                    I used to have a First Direct account, but gave up many years ago for various reasons. It was amusing phoning them in the evening from the USA, as I think it used to wake someone in an office in Leeds or Manchester up at 3 in the morning!

                    Internet banking saves a lot of time.

                    Comment

                    • MrGongGong
                      Full Member
                      • Nov 2010
                      • 18357

                      #11
                      Originally posted by Eine Alpensinfonie View Post
                      And I thought we were going to be talking about that still-half-good music shop in York.
                      I thought it was going to be about
                      Tony
                      or
                      Iain
                      or even
                      Iain M

                      Comment

                      • teamsaint
                        Full Member
                        • Nov 2010
                        • 25235

                        #12
                        I did internet banking for a while, and I know for lots or people it can be very useful

                        i had an apparently good PC protection (Panda) but my PC got Phished (I think). Anyway, I spotted it quickly and dealt with it, no harm done. Might have been nasty, as I was in the middle of re mortagaging...
                        Anyway, I am out and about a lot, so I stopped using internet as I have no real need to use it.
                        As regards buying on the web, i also generally only use well known sites, or ones that accept Paypal .
                        I will not be pushed, filed, stamped, indexed, briefed, debriefed or numbered. My life is my own.

                        I am not a number, I am a free man.

                        Comment

                        • Resurrection Man

                          #13
                          Originally posted by teamsaint View Post
                          .....Sky high interest rates on overdrafts, punitive fees for short term exceeding overdraft terms,.....
                          So don't go into overdraft. Simples.

                          Comment

                          • Resurrection Man

                            #14
                            Originally posted by MrGongGong View Post
                            ......
                            Iain
                            or even
                            Iain M

                            Now you're talking. Or even DCI Banks in which books I have been introduced to several singers who I would otherwise have missed.

                            Comment

                            • teamsaint
                              Full Member
                              • Nov 2010
                              • 25235

                              #15
                              Originally posted by Resurrection Man View Post
                              So don't go into overdraft. Simples.
                              how on earth do you come up with quality solutions like that ?
                              Amazing.
                              Got any equally straightforward solutions for suppliers/employers who don't pay on time, incorrect direct debits, emergency repairs that need making , and all the other stuff that happens in life?

                              Another solution to bank rip offs, of course, is not to use one. Which has itself been made close to impossible, and very expensive(EG cheque payments for utilities).
                              I will not be pushed, filed, stamped, indexed, briefed, debriefed or numbered. My life is my own.

                              I am not a number, I am a free man.

                              Comment

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