Can you really get a good deal if you stay loyal to your bank?
Most of us like to whinge about our bank when we get the chance. And these days it seems there’s plenty to whinge about.
As a result, your sense of loyalty towards your bank is likely be minimal.
Of course, here at lovemoney.com, we’re frequently telling you it’s simply not worth staying loyal to your bank because more often than not, the best deals are offered to new customers only.
However, in a bit of a turn-around, it’s now becoming more common for lenders to offer competitive deals for existing customers only. So if you take out a current account with a particular lender, you might be offered a better deal on a credit card or loan, for example.
So I thought it was time to take a closer look at these offers and examine whether they really are any good.
Market-leading deals
Before I run through some of the deals for existing customers, let’s take a quick look at the market-leading deals for savings, credit cards, and personal loans to give us an idea of the competition. Note that some of these deals will reappear later as they are actually for existing customers anyway, but I am including them simply because they are the market-leaders.
Savings
If you’re after an easy access savings account, the current market leader is the Nationwide MySave Online Plus account which offers an interest rate of 2.99%, including a 12 month bonus of 1.45%. And if you’re after a regular savings account, the most competitive account is the First Direct Regular Saver at 8%.
For tax-free savings, the top paying cash ISAs are the Halifax Direct ISA and the Santander Loyalty Flexible ISA, both of which pay 3%.
If you’re applying for a balance transfer credit card, make sure you follow these top tips.
Credit cards
Meanwhile, the best balance transfer credit cards on the market are the Barclaycard Platinum with 16 Month BT Visa, MBNA Platinum 16 Month BT Visa and the Yorkshire/Clydesdale Bank Gold MasterCard – all of which offer 16 months interest-free on balance transfers.
For purchases, the Tesco Clubcard Credit Card offers a market-leading 13 months interest-free on all your spending.
Personal loans
And finally, when it comes to personal loans, you won’t find better than the Nationwide Personal Loan at 7.5%.
Top offerings
So now let’s take a look at the deals you can get with eight of the major lenders if you’re an existing current account holder.
|
Provider |
Savings account |
Credit card |
Loan |
|
HSBC |
Regular Saver Account – 4% for Bank and Graduate Account customers. 8% for Premier, Advance and Graduate Advance customers Fixed Rate Cash ISA -from 2.75% for Advance and Premier customers. |
HSBC Credit Card – 0% for 15 months on balance transfers (2.9% fee). 0% for 3 months on purchases.
|
HSBC Personal Loan - 9.9% for loans between £7,000 and £15,000 |
|
Halifax |
Web Saver Extra – extra 0.20% for current account holders at 2.80% Direct ISA - extra 0.20% for current account holders at 3% |
Halifax Credit Card – 0% for 12 months on purchases, 0% for 9 months on balance transfers (3% fee). Clarity Card – extra benefit of £5 cashback when you spend £300. |
Halifax Personal Loan – 9.9% for loans between £7,000 and £15,000 |
|
Lloyds TSB |
Monthly Saver – 5%
|
n/a |
A range of personal loans for current account customers only. Interest rate given upon application. |
|
NatWest |
Advantage Reserve Account – tiered rates between 0.10% and 1.66% for Advantage Gold and Advantage Private customers. |
NatWest Platinum Credit Card – 0% for 15 months on balance transfers (2.9% fee), 0% for 3 months on purchases. YourPoints World MasterCard – earn 1 point for every £1 you spend – points can be redeemed on flights, holidays, shopping vouchers and more. |
NatWest Personal Loan – 11.4% for loans between £10,000 and £25,000 |
|
Barclays |
e-savings – from 0.10% |
n/a |
Barclayloan Plus – 8.9% for loans between £5,000 and £25,000 |
|
Nationwide |
e-Savings Plus – 2% e-ISA – 2.42% |
n/a |
Nationwide Personal Loan – 7.5% for loans between £7,500 and £14,999 |
|
Santander |
Loyalty Flexible ISA – 3% |
Santander Zero Credit Card – 0% for 6 months on balance transfers (no fee in first 3 months) and purchases. No foreign charges. |
n/a |
|
First Direct |
Cash e-ISA - 2.50%
|
First Direct Gold Card – 0% for 15 months on balance transfers (2.9% fee) |
First Direct Personal Loan – 8.9% for loans between £5,000 and £25,000 |
The highlights
As you can see, the accounts offered for existing customers vary considerably in how competitive they are.
For example, the e-savings account from Barclays is pretty disgraceful, offering an interest rate from just 0.10% (the maximum you can receive is 0.12%). Against the Nationwide MySave Online Plus which offers 2.99%, it looks pathetic and I have absolutely no idea why anyone would feel inclined to stay loyal to Barclays for that reason!
In contrast, the Web Saver Extra account from Halifax is much more competitive at 2.80%. And its Direct ISA is joint market-leader with the Loyalty Flexible ISA at 3%.
Taking a closer look at the credit cards on offer to existing customers, none of the cards in the above table is a market-leader. However, many of the cards still offer a competitive 15 months interest-free on balance transfers, compared to the market-leading 16 months. Although for purchases, you’d still be better off with the Tesco Clubcard Credit Card.
And when it comes to personal loans, it’s Nationwide that has the best rate at 7.5%.
So as you can see, you can get some very competitive deals if you’re an existing current account holder with any of the above lenders. However, as always, you should still shop around before you sign up to anything to ensure you really are getting the best deal.
Best for current accounts
So now you know what’s on offer if you’re a current account holder, which are the best current accounts to own?
Find out the trick that all savvy savers know
One of the most competitive current accounts on the market is the Santander Preferred In-Credit Rate Account which offers an interest rate of 5% on balances up to £2,500 for the first 12 months! What’s more, if you switch to this account, you’ll also receive £100 in cash! Bear in mind you will also need to pay £1,000 into the account each month.
Alternatively, the Halifax Reward Current Account will give you £5 each month you pay in £1,000 – whether you’re in credit or overdrawn.
And finally, if your priority is good customer service, the First Direct 1st Account is likely to give you just that. If you switch to this account, you’ll receive £100. What’s more, if you’re not happy with your account within 12 months, First Direct will also give you £100 to leave.
Bear in mind you will need to pay in at least £1,500 a month or hold an additional First Direct product, such as insurance.
So next time you’re hunting around for a better deal, make sure you check to see whether being loyal to your bank could pay off!
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