TSB IT chaos: bank offers interest rate rise on current account and waives overdraft fees for April

Yes, of course TSB customers should be offered reasonably generous compensation - generous enough to make recipients feel that the bank will make a proper investment in their IT to stop it failing again. But really that is not the important question. What customers need to consider is whether the risk of TSB's technology letting them down again is low enough to justify their staying with this bank. from what is reported, I think the answer is that prudent customers should move their business to another bank. The story if this failure shows: 1. That the bank management of its software update was seriously incompetent. 2. Senior management had no clear idea of what was going on. 3. The software design meant that when faced with a heavy load it muddled up different customers' data. I'm sure the bank can improve the situation to the point where failures are rare enough not to be in the news, but I doubt very much that they will fix the underlying structural faults in both the software and the management structure.

This is NOT "a system upgrade". "The problems arose last Friday when the bank attempted to move customers' accounts from former owner Lloyds to a platform, newly built, by its Spanish-owner Sabadell." (BBC News)

For the vast majority of customers, no compensation would be perfectly adequate as most people have absolutely no need to pour over their account on a weekly basis. For those that have genuinely been caught out when they needed to pay a bill manually or make a one-off transfer (say, you're paying your solicitor for a house move), no compensation is perfectly adequate because it can simply be pushed out with no consequence. For the remaining few (relative to the number of customers), that have genuinely incurred penalties or losses as a consequence of being unable to access the account. They should request compensation. The Ts&Cs may not support it, but TSB would be in a much better place if they did it. That said, their clever increase and waiver is surely targeted at attracting customers to replace those leaving, or try to retain those not or partially affected that were thinking of leaving. @pink_elefant: denying it doesn't make it true (now, where's that sarcasm emoticon).