Money Insider: Co-op Bank fights back with a golden hello

 

The battle for new current account business gathered pace this week as Co-operative Bank and Nationwide Building Society launched new incentives to try to tempt would- be switchers.

It's been a very troubled few months for the Co-op Bank but it's good to see it back and fighting for new current account customers with a £125 golden hello, £25 of which will go to charity.

Despite the high-profile issues with the behaviour of former directors and the fallout regarding the £1.5bn rescue package, at a branch level it's been business as usual, with the excellent customer service for which it has been renowned for over the years still much in evidence.

There's a long way to go if Co-op Bank is to regain trust and repair its reputation but this could be the first small step in the rebuilding process. What it will do is deliver some welcome competition, in very short supply when it comes to decent customer service.

Nationwide Building Society is taking a slightly different recruitment tack by rewarding existing customers with £50 a time for referring new business.

As it has some of the better current accounts on the market, I'm sure existing customers will have few qualms in recommending the UK's biggest mutual to friends and family fed up with poor deals and/or sub-standard service.

Under the Refer a Friend initiative when an existing customer recommends a Nationwide current account, and that person switches their main account using the Current Account Switch Service, both parties will receive £50.

Customers can recommend up to ten friends a year, giving them the opportunity to earn up to £500 per annum.Both incentives are worth a closer look, but it's more about finding an account that mirrors the way you run your finances than short-term incentives alone.

Home in on an investment without risking your capital

Last Monday Castle Trust launched a new five-year savings tracker which returns 100 per cent of any rise in the Halifax House Price Index.

The new "Protected Housa" guarantees to return 100% of your capital after 5 years whatever happens to house prices, but is it a good deal?

With experts predicting property prices to rise by up to 25 per cent by the end of 2018 there's potential (but no guarantee) of a reasonable return compared with rock bottom rates paid on standard fixed rate savings bonds.

The current best buy five-year fixed rate bond from Aldermore at 3.2 per cent would deliver £170.57 in interest on a £1,000 balance over the full term – to get the same return from the Protected Housa there would need to be a 17 per cent rise in the house price index in the next five years.

If house prices rose by 25 per cent this would be the equivalent of a five-year fixed rate bond paying 4.57 per cent.

If you invest the minimum £1,000 and the index rises by 20 per cent in five years your return (including original deposit) would be £1,200 gross. But if property prices fell by 10 per cent in five years, you'd still get your £1,000 back. There are no upfront or annual management fees, though only the first £50,000 is protected by the financial compensation scheme.

The Protected Housa looks like a decent product – not one to put all your eggs into, but maybe as part of a broader savings portfolio.

Andrew Hagger is an independent personal finance analyst from www.moneycomms.co.uk

Independent Partners; request a free guide on NISAs from Hargreaves Lansdown

PROMOTED VIDEO
Arts and Entertainment
Standing the test of time: Michael J Fox and Christopher Lloyd in 'Back to the Future'
filmReview: A week late, Secret Cinema arrives as interactive screening goes Back to the Future
News
Chancellor George Osborne, along with the Prime Minister, have been 'complacently claiming the economy is now fixed', according to shadow Chancellor Ed Balls
i100... which is awkward, because he is their boss, after all
Travel
travel
Arts and Entertainment
Sydney and Melbourne are locked in a row over giant milk crates
artCultural relations between Sydney and Melbourne soured by row over milk crate art instillation
Arts and Entertainment
Adèle Exarchopoulos and Léa Seydoux play teeneage lovers in the French erotic drama 'Blue Is The Warmest Colour' - The survey found four times as many women admitting to same-sex experiences than 20 years ago
filmBlue Is The Warmest Colour, Bojack Horseman and Hobbit on the way
Arts and Entertainment
Preparations begin for Edinburgh Festival 2014
Edinburgh festivalAll the best shows to see at Edinburgh this year
News
i100
News
Kenny Ireland, pictured in 2010.
peopleBenidorm, actor was just 68
Environment
View from the Llanberis Track to the mountain lake Llyn
Du’r Arddu
environmentA large chunk of Mount Snowdon, in north Wales, is up for sale
Arts and Entertainment
arts + ents
News
Morrissey pictured in 2013
people
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Financial Analyst - Forecasting - Yorkshire

    £300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...

    Business Architect - Bristol - £500 per day

    £500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...

    Regulatory Reporting-MI-Bank-Cardiff-£300/day

    £200 - £500 per day + competitive: Orgtel: I am currently working on a large p...

    Trainee Recruitment Consultant - Birmingham - Real Staffing

    £18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

    Day In a Page

    Dress the Gaza situation up all you like, but the truth hurts

    Robert Fisk on Gaza conflict

    Dress the situation up all you like, but the truth hurts
    Save the tiger: Tiger, tiger burning less brightly as numbers plummet

    Tiger, tiger burning less brightly

    When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
    5 News's Andy Bell retraces his grandfather's steps on the First World War battlefields

    In grandfather's footsteps

    5 News's political editor Andy Bell only knows his grandfather from the compelling diary he kept during WWI. But when he returned to the killing fields where Edwin Vaughan suffered so much, his ancestor came to life
    Lifestyle guru Martha Stewart reveals she has flying robot ... to take photos of her farm

    Martha Stewart has flying robot

    The lifestyle guru used the drone to get a bird's eye view her 153-acre farm in Bedford, New York
    Former Labour minister Meg Hillier has demanded 'pootling lanes' for women cyclists

    Do women cyclists need 'pootling lanes'?

    Simon Usborne (who's more of a hurtler) explains why winning the space race is key to happy riding
    A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

    A tale of two presidents

    George W Bush downs his paintbrush to pen father’s life story
    Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover

    The dining car makes a comeback

    Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover
    Gallery rage: How are institutions tackling the discomfort of overcrowding this summer?

    Gallery rage

    How are institutions tackling the discomfort of overcrowding this summer?
    Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players

    Eye on the prize

    Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players
    Women's rugby: Tamara Taylor adds fuel to the ire in quest to land World Cup

    Women's rugby

    Tamara Taylor adds fuel to the ire in quest to land World Cup
    Save the tiger: The day America’s love of backyard tigers led to a horrific bloodbath

    The day America’s love of backyard tigers led to a horrific bloodbath

    With only six per cent of the US population of these amazing big cats held in zoos, the Zanesville incident in 2011 was inevitable
    Samuel Beckett's biographer reveals secrets of the writer's time as a French Resistance spy

    How Samuel Beckett became a French Resistance spy

    As this year's Samuel Beckett festival opens in Enniskillen, James Knowlson, recalls how the Irish writer risked his life for liberty and narrowly escaped capture by the Gestapo
    We will remember them: relatives still honour those who fought in the Great War

    We will remember them

    Relatives still honour those who fought in the Great War
    Star Wars Episode VII is being shot on film - and now Kodak is launching a last-ditch bid to keep celluloid alive

    Kodak's last-ditch bid to keep celluloid alive

    Director J J Abrams and a few digital refuseniks shoot movies on film. Simon Usborne wonders what the fuss is about
    Once stilted and melodramatic, Hollywood is giving acting in video games a makeover

    Acting in video games gets a makeover

    David Crookes meets two of the genre's most popular voices