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; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Arts and Entertainment
Ben Stiller as Derek Zoolander in the leaked trailer for Zoolander 2
film
Sport
footballArsenal take the Community Shield thanks to a sensational strike from Alex Oxlade-Chamberlain
Arts and Entertainment
Gemma Chan as synth Anita in Humans
film
News
Keeping it friendly: Tom Cruise on ‘The Daily Show’ with Jon Stewart
people
Arts and Entertainment
Ensemble cast: Jamie McCartney with ‘The Great Wall of Vagina’
artBritish artist Jamie McCartney explains a work that is designed to put women's minds at rest
News
Republican Presidential Candidate Donald Trump
people
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: DBA Developer - SQL Server

    £30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...

    Recruitment Genius: Customer Service Administrator

    £13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...

    Recruitment Genius: Dialler Administrator

    £22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...

    Ashdown Group: Contracts Manager - City of London

    £35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...

    Day In a Page

    Turkey-Kurdish conflict: Obama's deal with Ankara is a betrayal of Syrian Kurds and may not even weaken Isis

    US betrayal of old ally brings limited reward

    Since the accord, the Turks have only waged war on Kurds while no US bomber has used Incirlik airbase, says Patrick Cockburn
    VIPs gather for opening of second Suez Canal - but doubts linger over security

    'A gift from Egypt to the rest of the world'

    VIPs gather for opening of second Suez Canal - but is it really needed?
    Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

    Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

    Fashion editor, Alexander Fury, applauds a man who clearly has more important things on his mind
    The male menopause and intimations of mortality

    Aches, pains and an inkling of mortality

    So the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
    Man Booker Prize 2015: Anna Smaill - How can I possibly be on the list with these writers I have idolised?

    'How can I possibly be on the list with these writers I have idolised?'

    Man Booker Prize nominee Anna Smaill on the rise of Kiwi lit
    Bettany Hughes interview: The historian on how Socrates would have solved Greece's problems

    Bettany Hughes interview

    The historian on how Socrates would have solved Greece's problems
    Art of the state: Pyongyang propaganda posters to be exhibited in China

    Art of the state

    Pyongyang propaganda posters to be exhibited in China
    Mildreds and Vanilla Black have given vegetarian food a makeover in new cookbooks

    Vegetarian food gets a makeover

    Long-time vegetarian Holly Williams tries to recreate some of the inventive recipes in Mildreds and Vanilla Black's new cookbooks
    The haunting of Shirley Jackson: Was the gothic author's life really as bleak as her fiction?

    The haunting of Shirley Jackson

    Was the gothic author's life really as bleak as her fiction?
    Bill Granger recipes: Heading off on holiday? Try out our chef's seaside-inspired dishes...

    Bill Granger's seaside-inspired recipes

    These dishes are so easy to make, our chef is almost embarrassed to call them recipes
    Ashes 2015: Tourists are limp, leaderless and distinctly UnAustralian

    Tourists are limp, leaderless and distinctly UnAustralian

    A woefully out-of-form Michael Clarke embodies his team's fragile Ashes campaign, says Michael Calvin
    Blairites be warned, this could be the moment Labour turns into Syriza

    Andrew Grice: Inside Westminster

    Blairites be warned, this could be the moment Labour turns into Syriza
    HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

    The mystery of Britain's worst naval disaster is finally solved - 271 years later

    Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
    Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

    'I saw people so injured you couldn't tell if they were dead or alive'

    Nagasaki survivors on why Japan must not abandon its post-war pacifism
    Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

    The voter Obama tried hardest to keep onside

    Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen