Looking For A Better Bank/ Building Society

[Bargepole23 337]

1 hour ago, Albert the Cat said:

My first ever bank account was with Midland Bank which became HSBC and have never found a need to move.  Great current account if you managed to get the Aspects cover which is no longer available for new customers.  I also use HSBC for great mortgage deals and share dealings via Investdirect.  HSBC has the second largest reserves behind JP Morgan.  HSBC didn’t need a bailout in the 2008 crash and won’t need one now.  If your money isn’t safe with them, we have far bigger problems.

Puting money in a savings account when interest rates are so low just doesn't make sense anymore.  I am taking advantage of the depressed stock market to bag a few really good deals.  To minimise my risk I only buy into FTSE 100 companies and steer clear of the obvious industries in trouble, such as oil, airlines etc.  My current portfolio is going to enjoy an annual dividend yield of 10%+ once things are back to normal.  No bank is ever going to give you those rates.

Ay up Mystic Meg....😉

 

You are right though, I've really upped my pension contributions, amongst other things, rather than putting more money into savings accounts.

Edited April 21, 2020 by Bargepole23

[ECCOnoob 1,032]

2 hours ago, AKAMD said:

I'm with you classicfan.  All banks are in business to make money out of you and the less money you have the more they make out of you proportionately.  The Co-op is no different but at least they don't invest in anything unethical.  Apart from having to travel 16 miles to my nearest branch (which would be the same if I was with any other bank now), I have no issues with their services.  I switched to the Co-op from TSB over 20 years ago and  I am happy to stay with them.

That's pretty much spot on, and to be frank, that's entirely why they can offer 'free' banking services.   

 

I know people moan about it but I bet a vast majoroty wouldn't really want to go back to the days of having to pay a bank upfront to use even their most basic of services.   If anyone wants to have even a slight taste of what it would be like just have a look at the kind of account thresholds and charges that a private banking service such as Coutts or Raphael's has.  Imagine that boiled down to a high street level.

 

To the OP:  the problem with a question like yours is that you are going to get no definitive answers.  I personally have no problems with NatWest but wouldn't touch HSBC with a barge pole.  I'm sure many disgruntled ex NatWest customers will have a very different opinion.

 

It's also useful to be aware as to who owns what.  For example Lloyds does own Halifax and the Bank of Scotland but that is not the same as the Royal Bank of Scotland which is an entirely different organisation and has control over NatWest and Ulster Bank.   Last time I checked Yorkshire and Clydesdale and Virgin money banks are owned by the Australians.  Bank of Ireland is in charge of the Great British post office banking services and Spanish owned Santander seemed at one point to have taken over everybody.

 

As others have said, some of the lesser known New kids on the block, particularly the online-only ones are a breath of fresh air but always be wary and research thoroughly as they too can have problems as the the almost newly opened Metrobank is finding out the hard way. 

[Albert the Cat 0]

4 hours ago, AKAMD said:

I'm with you classicfan.  All banks are in business to make money out of you and the less money you have the more they make out of you proportionately.  The Co-op is no different but at least they don't invest in anything unethical.  Apart from having to travel 16 miles to my nearest branch (which would be the same if I was with any other bank now), I have no issues with their services.  I switched to the Co-op from TSB over 20 years ago and  I am happy to stay with them.

You could invest in companies directly yourself.  Then you know exactly who you have invested in.  Also, cutting out the middle -person means you get all of the benefit.

3 hours ago, Bargepole23 said:

Ay up Mystic Meg....😉

 

You are right though, I've really upped my pension contributions, amongst other things, rather than putting more money into savings accounts.

I am somewhat confilicted with this.  This is assuming that you are going to live to retirement and long enough to get enough out in terms of what you have put in.  I currently max out my share purchase allowance every month and hold on to them for five years as to not have to pay income tax on the shares.  This way, I get the tax free element as if I contributed into a pension but get the money sooner.

 

Edit: I am hedging my bets and contribute 10% of my wage into the pension and the company effectively matches it.

Edited April 21, 2020 by Albert the Cat

[Mossway 15]

51 minutes ago, Albert the Cat said:I currently max out my share purchase allowance every month and hold on to them for five years as to not have to pay income tax on the shares.  This way, I get the tax free element as if I contributed into a pension but get the money sooner.

Not sure about the five years, but I thought you only pay CGT, not Income Tax, on selling shares if you exceed the allowed CGT limit. If its in your pension fund (SIPP) you pay Income Tax when you draw income, ie sell shares or funds and take the money as income.

Please explain the 5 years bit - unless I’ve misunderstood you.

[Albert the Cat 0]

59 minutes ago, Mossway said:

Not sure about the five years, but I thought you only pay CGT, not Income Tax, on selling shares if you exceed the allowed CGT limit. If its in your pension fund (SIPP) you pay Income Tax when you draw income, ie sell shares or funds and take the money as income.

Please explain the 5 years bit - unless I’ve misunderstood you.

I can buy my company's shares from my gross salary before any deductions. If I hold onto the shares for 5 years (or more) I can sell them at the market rate and keep all the money. Since I pay 40% tax, I can effectively let the shares drop 40% in price before I start losing anything.

[Mossway 15]

Thanks for the explanation.

As you’ll see I screwed up, unintentionally, quoting you !

Rgds.

[kaytie 11]

HSBC.    

[Jeffrey Shaw 90]

My own accounts are with First Direct. I've found FD to be better than its parent (HSBC UK Bank plc) where my business accounts are conducted- plus FD's call centre is in the UK (i.e. it's easier to understand the staff)  AND calls are actually answered (i.e. you're not put on hold for several centuries).

Edited April 24, 2020 by Jeffrey Shaw

[Albert the Cat 0]

On 24/04/2020 at 16:27, Jeffrey Shaw said:

My own accounts are with First Direct. I've found FD to be better than its parent (HSBC UK Bank plc) where my business accounts are conducted- plus FD's call centre is in the UK (i.e. it's easier to understand the staff)  AND calls are actually answered (i.e. you're not put on hold for several centuries).

I have never been on hold with HSBC.

[Jeffrey Shaw 90]

On 25/04/2020 at 22:15, Albert the Cat said:

I have never been on hold with HSBC.

Lucky you! Just try sending a large CHAPS/BACS payment to a new beneficiary and then see what happens.