Three banks that treat their customers well

Believe it or not, some banks do offer rewards for customer loyalty. But which ones?

Generally speaking, here at lovemoney.com, we say it’s always best to shop around when you’re looking for a new financial product and not to believe that being loyal to your bank will get you anywhere. After all, in many cases, the best deals are only offered to new customers.

However, it’s beginning to look like things might be changing, with more and more financial products being offered to existing customers only. Don’t believe me? Take a look at this little lot.

Rewards from Halifax

I have to admit I have banked with Halifax for several years now, partly because I used to work there, and I now have a range of financial products with Halifax.

Now you might think that’s not a very good example of shopping around. After all, I am putting many of my eggs in the same basket. But the good news is I am finally being rewarded for my loyalty – as a Halifax current account customer, I can now get better deals on both my savings account and my credit card.

Anyone who holds a Halifax current account gets a 0.2% bonus rate on the Halifax Web Saver Extra account which offers a very competitive interest rate of 2.80% (including the bonus). In comparison, the top paying easy access account right now is the West Bromwich Direct Bonus Account 2, which pays only a slightly higher interest rate of 2.83%.

So if you ask me, the Halifax Web Saver Extra account is a pretty attractive offer. That said, the drawback to the account is that you can only make one penalty-free withdrawal per year. The West Bromwich account, on the other hand, allows you to make three penalty-free withdrawals per year.

Having a Halifax current account also means I can apply for the Halifax Existing Customer Offer for credit cards. This offers a market-leading 12 months interest-free on all purchases, as well as nine months interest-free on balance transfers (3% fee). (Note, you shouldn’t use this card for both balance transfers and purchases, otherwise you’ll get caught out by a nasty trick called negative order of payment.)

It’s a pretty handy credit card to have in your wallet – particularly if you’re planning to do a bit of spending.

The bonuses don't end there, however, because the Halifax Reward Current Account itself is a pretty great financial product to have anyway! Every month you pay £1,000 into the account you’ll be rewarded with £5 – whether you’re in credit or overdrawn. So it's a pretty competitive current account, with an array of extra benefits to boot!

Alliance & Leicester’s top offering

At lovemoney.com HQ we’re regularly singing the praises of the Alliance & Leicester Premier Direct Current Account. That’s because it offers a truly fabulous interest rate of 5%, providing you pay £500 into the account each month - that’s more than most savings accounts are paying these days.

Similarly, the Alliance & Leicester Premier 50 Current Account offers an interest rate of 5%, although you will need to be aged 50 or above to qualify for this account. You will also need to pay a monthly fee of £10, but in return you will be rewarded with annual worldwide travel insurance up to age 79, exclusive health benefits, and identity protection – benefits which Alliance & Leicester claim are worth more than £300.

So as you can see, these are great accounts in their own right. But the extra advantage of applying for one of these accounts is that you’ll also be able to apply for the highly competitive Alliance & Leicester Premier Regular Saver Account which offers a fabulous interest rate of 6% for 13 months!

In fact, this is very close to being the best regular savings account on the market. The only account that pays a higher rate is the HSBC Premier Savings Account which offers 8%, but you’ll have to pay for this account.  

The Alliance & Leicester Premier Regular Saver allows you to pay in between £10 and £250 a month, but you won’t be able to make any withdrawals until the 13 months is up.

So not only will you be getting a great deal on your current account, but you'll also get a great deal on your savings account.

Fabulous First Direct

First Direct is renowned for its excellent customer service. And if you’ve ever had to spend hours on the phone having strong words with your bank, decent customer service might be top on your list when you’re choosing a current account/savings account/credit card.

But as well as getting excellent customer service, if you switch to the First Direct 1st Account, you’ll be given £100 in cash, providing you pay at least £1,500 into the account each month. And if you decide you’re not happy with the service within the first year, you’ll be given another £100 to leave.

However, if you do decide to stay put with First Direct, your loyalty will be rewarded because you will be able to apply for the First Direct Gold credit card. This offers 0% interest on all balance transfers for a market-leading 15 months*. You’ll also get a minimum credit limit of £3,000.

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The benefits of being a First Direct current account customer don’t end there, as you’ll also be able to apply for the First Direct Regular Saver Account which offers 5% for 12 months.

Although this isn’t quite as competitive as the Alliance & Leicester Premier Regular Saver, it’s still a good deal, and if good customer service is more important to you than an extra 1% in interest, this might be the place to go. Again, note that you won’t be able to withdraw your cash during those 12 months.

Of course, the three lenders I’ve mentioned here are not the only lenders to reward their customers for their loyalty. I’ve just pointed out three of my favourites. So if you’ve been with your bank for several years now, it’s certainly worth investigating whether you can get anything for your loyalty. And if not, maybe it’s time to take your custom elsewhere!

*This applies to online deals only. You can get 16 months interest-free on balance transfers with the Clydesdale and Yorkshire Gold credit cards, providing you apply at a branch, and not online.

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