I thought I would start a thread on Bank accounts!

There are so many different types, and from time to time special offers which it would be useful to know about. Also if anyone has a problems or was it really straight foward. It would also be useful to know about all types of accounts including business accounts and the different services on offer. Even down to the problems of finding contact telephone numbers.

For example, I tried to open a Halifax Regular Saver account today as it pays 6.05%, but didn't because:
1. I also had to open a second account as well, which had to be one of four they offered.
2. Even though I already bank with the Halifax I still have to supply proof of ID and proof of address prior to the account being opened. (30 mile round trip and 2 hours wasted)

So in the end I opened 2 accounts elsewhere.
1. Egg, (6 month intro offer of 4.75%, involved transfering funds from existing egg account @ 4% to my current account with Halifax, and then transfer back to new account!)
2. ING account @ 4.5%, (4.7% from June 04) which was the easiest account to open - No ID, or proof of address. The only requirement was I have to post a cheque (Freepost address) to open the account!

The last account i opened was a telephone savings account with no banking facility and they carried out a credit check on us before posting the forms for signature. It was a lot easier than dealing with a branch. Fortunately we don't do loans or the credit checks could be a problem.

I don't have a problems with credit checks, its having to prove that the identity I said I was a year ago and proved it then, is the same identity I have now and have to prove it again. (The same goes with proof of address, even thought I have not moved since producing it last time!)

To show how stupid this all is - a friend left the Armed Forces after serving 15 years and got a new job and applied for a mortgage so he could live near his new job.

The mortgage lender requested written confirmation that he had been previously been in the Armed Forces, which was not a problem.

What caused a problem, was that there was a delay on the purchase of more than 3 months, so the lender decided they need confirmation the details had not changed. So they wrote again, confirming that the person had previously been in the Armed Forces!

The person receiving the letter did not reply because they had already replied to the previous letter, and could not understand why they should make the request again. It was only after several requests that the lender managed to get a reply - but the whole thing got delayed even more because of what I can only call the "stupidity" of some banks requirements.

found today northern rock 1 year fixed at 5.25%

Little Woman - Is the ID business as easy with the egg internet a/c
as it is with ING? Only considering opening an egg a/c due to
the rate they have on offer BUT if it's hassle and longwinded frankly
I don't think I'll bother.

I have had an ING account for a while and one bonus is that they do move their rate up in line with interest rates, whereas other higher rate accounts do not have such a good track history of maintaining good rates.

I have had an ING account for a while and one bonus is that they do move their rate up in line with interest rates, whereas other higher rate accounts do not have such a good track history of maintaining good rates.

Agreed jj50 - the ING one seems to be continuing to shine
beyond the initial razz of it opening up - which is a pleasant
surprise these days!! I'm very happy with ING, but curious to
consider egg as an additional nesting area!!

The only problems with Egg is the great rate is only for 12 months & then it drops. You can't transfer the money to a new account at the higher rate. It has to be transfered out to another bank, before transfering it back.

It's too much hassle - so although I still have the EGG account - I'm using the ING one because I don't need to keep an eye on the rate.

Isn't it safer to put your money under a matress, rather than make an unsecured loan to a bank, where you're only garanteed to get 90% back, up to a maximum of 18,000? And that is for cash, since its just governement printed paper and can be easily replaced.

Harder assets have no garantee of return to the original owner, if your bank has lent your assets into Ford's $180,000,000,000 debt, or something similar, a 3G telecoms licence or other daft investment on your behalf.

For large sums, why risk a huge loss for a marginal gain?

Little Woman - thanks for the info on the Egg account, it does
sound hassle to be honest, easier to keep things as they are.

Crystalclear - err..unless I am wrong (quite possible)the
first 30,000 of your money held in a UK bank is protected from
loss from the bank going bankrupt not the first 18,000.
Obviously if you have more on deposit than that with any bank you
need to shift the excess above the protected ceiling to another one
just in case - highly unlikely event..- that the bank goes belly up.
I certainly wouldn't go for the mattress idea personally, but there
again you might live in a crime-free area that might make the idea
attractive - if you find an interest paying mattress please let me know
where to get one!!

stockbunny
The threshhold may have gone up. I think the sum was 20,000 is 90% protected, which is why you get up to 18,000 if a bank goes belly up.

You might want to make a pretty much unsecured low interest loan to your local bank. Its musical chairs really. The banks lend out other peoples money for things like Enron, Ford, 3G telecoms licences, peoples mortages, etc. That's not the nightmare scenario, that's the case for banks that are solvent. 1 in a bank is say 10 people 1 in credit and 9 people 1 in debt. What happens then, when two people take their 1 out and buy Chinese toys for their kids? (Or a Toyota, for an more real life example? Toyota makes more than twice as much profit as the big three put together!)

If someone wants his money back, its no problem, but if a few do, then its time to start asking people to repay their mortgages straight away and not in installments; time to ask the telecoms companies for the cost of their 3G licences back now, and not when the service is in profit in the years to come.

If you want an interest paying matress, take part of your wealth in the form of carrot seeds and bury them in the garden. My girlfriend's potatoes are giving her a tax free regular 1000% return on her investment. Trouble is she eats 900% and only plants the same again the next year. Do you have the odd can of spare petrol in the garage? What is the interest rate on that if you filled the can a year ago?

Okay, thinking of how to do that sort of thing with 30,000 is harder, but you get the idea? But if you have huge sums, and want to lend it to Ford, why not lend it to Ford? Why have somebody you don't know lend it out for you, without you knowing where? At least if you lend to Ford and Ford boes bust you only have yourself to blame.

Anyone know whose offering interest free on credit cards at the moment, and whose rates stay low after free period?

amber,

Have a look at this link - it is from MoneyAM's new personal finance page
http://www.moneyam.com/pfinance/?page=Credit%20Cards

Regards

Ian

Many thanks Ian.

Regards, Amber

For info, ING Direct account up to 4.7% from June.

I know..goood huh....(giggle)

thanks jj50 - I've up dated the top bit.

Anyone tried to move a business account lately?

Amber,

I have a MINT card which at the moment is offering interest free credit on all purchases and transfers until Feb 2005, plus I believe, money back on purchases. Worth a look.

Little Woman - in a word NO...but I am reliably informed that it is
about as painless as pulling teeth!! (lol)

Just applied for an ing account after reading your comments little woman and am now waiting for my 'starter pack', does this outfit belong to another bank or is it on it's own?