Turn that frown upside down (smile.co.uk)

Member Name: scoobydooyoo

Product:	smile.co.uk
Date:	24/07/06 (306 review reads)
Rating:

Advantages: Overall good value, no queues, easy to use website

Disadvantages: Random interest rate cuts

Like so many people my first current account was with one of the 'big four' who dominated retail banking in the UK for so long. I chose Barclays - largely on the basis that my brother worked for them and their branch was close to my house.

In late 2000 however my attention was caught by smile - a bank only a year old and offering interest rates on their current account at multiples of my Barclays account. Having no branches and offering only internet access to your account (with telephone support) they were able to offer unprecedented good value for a retail bank.

Convinced by both the interest rates and the convenience factor I switched my account in a relatively painless process. Some five and a half years later I have very few reasons to regret the decision.

I now have a current account, cash isa, savings account and credit card with smile. So are they the best value provider for each of these categories? Well that rather depends on your definition of value. Taken on the numbers alone, probably not. The retail banking arena has become substantially more competitive in the past few years - thanks in part to the likes of smile and other internet pioneers. Consequently you can probably find higher interest rates for your savings and current accounts elsewhere at any given time. In fact I recently moved much of my savings to a Yorkshire Building Society account (Internet Saver) which offers much better rates. However, if you factor service into your definition of value then smile is a definite high end performer - it may not top the league tables but it will consistently provide good rates and reliable service.


So - any faults? Well as others have commented in the past, the interest rate policy can seem a little cynical at times - cutting rates while the Bank of England rate remains unchanged. However, this seems to have diminished of late (and was more of an issue when smile topped the 'best buy' league tables). And this seems in any event to be a common problem with many banks.

Overall, if you are still with one of the old 'big four' then it would seem crazy not to explore other options. If the concept of internet only banking does not alarm you then you should not hesitate to put smile on your shortlist.

Summary: Consistent value and a quality service