We’re quick enough to criticise financial providers for cutting savings rates, increasing the cost of borrowing or being a little sneaky with their terms and conditions, but this week there have been a couple of positive moves from providers that have helped restore my faith in the financial services industry.
Firstly on Tuesday, Coventry Building Society announced that is now showing savings rates from the whole market on its website.
So before a customer commits their money to The Coventry they can check out competitor accounts to see whether there are more suitable or rewarding options for their nest egg.
This is an excellent example of transparency albeit in the knowledge that Coventry Building Society is well aware that its savings rates are (and have been for some years) very competitive and not far off the best buy products
Its a good move for the consumer and it would be great if this became the blueprint for all savings providers – it would see fewer people being taken for a ride with their hard earned cash stagnating in an account paying a derisory 0.1% or less.
The second move that gets my nod of approval this week comes from Tesco Bank which is guaranteeing that the 3% credit interest rate on its current account (max balance £3,000) will be maintained for at least the next two years.
It’s a bold move and is one I didn’t see coming.
Many of the ‘in credit’ or rewards based current account best buy products are now a shacdow of what they were a few months ago with Santander, Lloyds Bank, TSB and Halifax all massively scaling down the customer benefits in this area.
The Tesco Bank move gives customers some much needed certainty and may be enough to tempt some people who have been weighing up whether they should switch banks to finally get off the fence and benefit from a more rewarding deal.
Unfortunately the bad news personal finance stories tend to outweigh the good, but credit where it’s due – let’s hope a few other providers take note and react with a positive proposition of their own – I won’t be holding my breath but would love to be proved wrong for the sake of the industry and hard done by savers.
- 0% Credit Card Balance Transfer terms on the slide since lockdown - July 13, 2020
- Mainstream credit card rates unchanged in 2020 – for now - June 16, 2020
- Best Buy Fixed Rate Savings – 22nd May - May 22, 2020