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(no subject)
2012
unknownj

http://www.barclays.co.uk/10

This upsets me. I can't say why, because it relates to (formerly) strategic information. Let's just say that this puts something of a dent into plans that I've helped with.

Still, a 10% rate on savings surely destroys any margin they might have, so it's not about that.. A closer look reveals that the offer is only available if your salary goes into your Barclays account, it amounts to more then £1,000, and you have to deposit a fixed amount between £25 and £250, without additional payments of withdrawals..

So first of all they force you to move your current account to them, and then they keep you there by not giving you access to your money for a certain period of time. And they reserve the right to cancel your deal at any time.

This is all about grabbing current account share, at a huge cost. There are two ways to increase market share of profit. The first is to win profitable customers, to increase the profitability of existing customers, and to generally do Good Things. The other, which is what Barclays are doing, is to devalue the whole market, and bring in customers that were profitable for other banks and have them break even. It makes you better compared to competitors in the industry, but not against the wider financial market..

In short, it's a way to take everyone down with you, and be the best of a bad bunch..

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Annual Equivalent Rate.

It effectively gives you an idea of what the interest would be equivalent to if it was compounded and paid on an annual basis.. It's kind of like APR, but for savings instead. I don't know why they use different terminology for it.

Interesting. We just generally give a percentage rate, and then it's divided by 12 and compounded monthly. Although, I've never gotten any interest on a banking account :)

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