News Archive - March 2010
Rip-Off Banks!
30/03/2010
The news is that banks and building societies are ripping off their customers who hold Cash ISA savings. They do this in two ways.Firstly, by taking an inordinate length of time to process ISA transfers, meaning that customers miss out on interest. Secondly, they pay derisory rates of interest in Cash ISAs, meaning that you could actually be better off in a normal savings account, paying tax on your interest.
What amazes me is how long it is taking people to grasp the idea that banks are not the best place to go for financial advice. There are many reasons for this. Banks generally sell only their own products or those of one insurer, meaning that you are not getting the best deal on the market. Bank advisers are generally not well qualified, and they are also highly target- and sales-driven - this is a nightmare combination. Banks and building societies account for the vast majority of mis-selling complaints made by the public - sadly this reflects on the entire financial services sector and causes general mistrust of advisers. I have lost count of the number of people I have spoken to who were 'sold' an unsuitable investment by their bank and have been scared off making any further savings.
What really makes me sick is the recent TV ads for banks, using smiling staff to try to repair their damaged credibility. The adviser talking to the woman with the baby - she only wants a children's savings account and he manages to shoehorn an Investment Bond into the conversation! You couldn't make it up! Even the baby knows he is talking rubbish!
Please! By all means use your bank for current accounts, credit cards etc, but if you need any proper advice on pensions, retirement planning, tax or investments, go and see an Independent Adviser - and shop around for your car and home insurance as well. You know it makes sense. The banks have mortally wounded our economy with their greed - so make them pay. Don't buy their rip-off products.