Member Article

UK banks battle for customers in incentives war

After the excesses of the festive period, and as the high street banks start to battle it out for new customers it’s important to start the New Year on the right financial footing, says an industry-leading UK cash management service.

The New Year is often the time when high street banks race to get new customers with enticing rates, and incentives including cash back. This year, M&S Bank were first off the starting blocks, with an offer of a £100 M&S gift card, £10 a month for the first 12 months to spend in store, and a 6% savings rate.

Kirsty Grainger, Operations Manager at innovative, industry-leading whole of market cash management service Dynamic Cash Management, said: “As well as the offers from the big names on the high street, ICICI have just brought back their 1.65% easy access account, which they previously withdrew from the market. This is good news this week as it shows that providers are still willing to provide better packages for savers to counter the continued low interest rates from the Bank of England.”

January is often described as a “long month”, where pay day seems like an eternity away and the Seasonal Affective Disorder (SAD) starts to creep in. Whilst people flock to the January sales to save the pennies, or set ambitious goals for their New Year’s resolutions, it seems very few will have the inclination to invest the time to take the same approach to their finances.

“January is the perfect time to make a New Year’s resolution about getting your finances in order and make your savings work harder for you.

“Although clearing debt is a common New Year’s pledge, savers should consider ways to make their cash work harder for them too. When you have money tucked away in a savings account there’s a huge temptation to leave it there without checking whether or not you’re getting a good rate – and most of the time, you won’t be.”

But for most regular Joe’s who don’t have the expertise in personal finance, it can be very difficult to know where to start.

Kirsty said: “Just like changing supplier in the utilities sector, many people just don’t have the time or inclination to switch savings accounts – but it can make a huge difference in terms of return on cash and the rewards can be huge.

“Many think – why bother? But moving accounts can make a massive difference, with percentage comparisons between accounts often differing by up to 1.25%.

Kirsty said: “Our biggest tip for those looking to boost their savings in 2016 is to keep your money on the move. Monitor rates weekly and move your money frequently. If that all seems too much aggravation you can get companies to do it for you.

“Our service actively monitors the performance of more than 165 institutions and then automatically switches balances when better rates and new opportunities arise. We also operate the service to support Independent Financial Advisers (IFAs), so that they can offer it to their clients.

“So, whatever you are saving for in 2016 – whether it be your child’s university education, buying a property or even to cover tax bills and other expenditure, make your savings count – and whatever you do, don’t be apathetic!”

For further information on Dynamic Cash Management, visit the free-to-use illustration tool and online portal at www.dcmcash.com or email DCM@DCMCash.com

This was posted in Bdaily's Members' News section by Gale and Phillipson .