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Original poster

Surprised bank didn't try to persuade us to stay

15 replies

violetina · 17/05/2014 17:13

I would have turned them down, but find it a little surprising that when I moved our account of over 25 years from Lloyds recently, there wasn't a letter or phone call asking us why or trying to persuade us to stay.

It was prompted by a letter saying they were stopping the interest on that account (with no suggestion of an alternative) which had followed a timeconsuming and unresolved runaround involving an overseas call centre regarding a small unrecognised transaction... I was worried it was a scam where crooks somehow skim off a small amount to see if the account holder notices.

Joint income going in every month, never overdrawn - maybe they have a policy of trying to deter people like us who don't generate much income for them? Any ideas?

Anyway, we are now getting 5per cent interest for a year elsewhere, and it was easy to move.

OP posts:

iK8 · 17/05/2014 17:23

They won't care. You're just one of millions. Sorry.

PourquoiTuGachesTaVie · 17/05/2014 17:26

5% interest per year... Have you just opened a Halifax (or Bank of Scotland) reward account by any chance? If so that's still Lloyd's isn't it? (Part of Lloyd's banking group?)

Original poster

violetina · 17/05/2014 17:27

Nationwide

OP posts:

BingoWingsBeGone · 17/05/2014 17:28

Club Lloyds is the replacement. 4% interest up to £5k iirc with at least £1.5k paid in and 2 direct debits out iirc

Changed mine this week but had to watch a faffy video...

Original poster

violetina · 17/05/2014 17:39

I thought there would be an alternative with interest. We were surprised they didn't suggest it in the letter about the interest being removed.

OP posts:

BingoWingsBeGone · 17/05/2014 17:42

They did send me a booklet thingummy but it wasn't clear and I got bored so went in there and asked them to just talk me through it. I agree it is a PITA though given it isn't much different (slightly lower interest and higher monthly credit?)

specialsubject · 17/05/2014 18:06

this is the Lloyds vantage accounts which were paying up to 3% with no direct debits, and now pay half that IF you have two direct debits. It's not just you, OP, the deal is stopping as of July 2 for everyone. Lloyds is a toxic bank now and doesn't want your money, hence the end of the deal.

make sure your club Lloyds account meets the conditions or you get a £5 a month fee.

FYI TSB have Enhance accounts which pay the same as the Vantages did, and no direct debits needed. Or there's that Nationwide one (deal is only for a year), or TSBs classic plus which pays 5% with no direct debits needed.

Fluffycloudland77 · 18/05/2014 20:18

What's a toxic bank?

When dh was with lloyds his balance & available balance never tallied, now he's with halifax they do.

I want him to ask them to investigate because he says he has more money now

specialsubject · 19/05/2014 10:55

Lloyds and TSB were split for various reasons (I'm not a great expert). But Lloyds is the half with all the bad debts and so will be trying to shed excess customers and cut costs.

available balance = balance excluding cheques waiting to clear. Does that help?

Fluffycloudland77 · 19/05/2014 12:06

Yes!. We've moved three accounts from them since January so I have done my bit to help them

MarathonFan · 19/05/2014 12:20

They are obliged to send those letters when they reduce the interest rates.

The vast majority of customers do nothing and the bank benefits from substantial balances and paying no interest. The risk that some (like OP) will move their account is a risk worth taking. They expect to lose some every time they do it but they're still better off because most of us are too busy/lazy to move banks.

throckenholt · 19/05/2014 12:30

I don't get the bit about why they want you to have direct debits ? I don't really like direct debits and get irritated that they stipulate you have to have at least 2.

specialsubject · 19/05/2014 13:15

this is to make sure you are using it as a real bank account and not (perish the thought) just after an interest rate on your hard-earned money that might be somewhere near inflation.

and while Mark Carney continues to treat savers as scum, it will all continue.

Original poster

violetina · 19/05/2014 14:42

It was easy to move, I'd encourage anyone to do so.

We are looking at opening another current account as this one only pays the 5per cent on up to £2,500 - even after tax , it's better than ISAs, so it's where out savings can sit.

And when the 5 pc deal ends, I expect we'll move it again or change to a fee paying one where you get travel insurance and breakdown cover.

OP posts:

throckenholt · 19/05/2014 14:56

specialsubject - does it matter to the bank ? They have your money to invest - why does using a couple of direct debits benefit the bank at all ?

Even the account that my salary does into I don't really use direct debits (I would rather be in control of what goes out rather than giving companies carte blanche to take what they deem is appropriate for that month). Would far rather have a standing order than a direct debit.

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