| Product: |
High Street or Online? |
| Date: |
25/08/02 (35 review reads) |
| Rating: |
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Advantages: Using a traditional provider with a good rate and internet service is best
Disadvantages: You can still get a better rate from the non-branch providers of bank accounts
There are joys in online banking and clear benefits of branch based banking.
For the purpose of this opinion, I will refer soley to Current Account products.
Security: This one is as broad as its long. At the end of the day, your debit card can be used fraudulently, whether you bank online or not. The bottom line is, as long as you have not been negligent, you will be refunded in full. The same applies to having your account hacked. It could happen, it would be a pain, but you will not ultimately be out of pocket.
Ease Of Use: You cannot pay in cash to your account via your floppy disk drive! From this point of view, branch banking wins hands down. You cannot talk to a human being face to face with online banking - although doubtless the video link will come! Branches offer this service, and if you feel your stuck with an inexperienced staff member, ask to see someone else! It works!!
Speed Of Use: I personally use the Halifax service - it is quick, real-time and links in with all there other online offerings (eg credit cards, sharedealing etc). The ability to transfer from my current account in to my savings account and see it appear there IMMEDIATELY is one I cherish. Paying £2 to park outside the local branch and then queuing up to move money doesn't appeal!
So for me, I need people contact in the branch, and I need online effciency. At the same time, value for money is also appreciated!
I do find it strange that to move money from one organisation to another online still takes 3 working days via the BACS system. While I can understand banks not wanting to invest in faster cheque clearing (the cheque will die out one day!), surely they can sort out same day transfers online!
So, for me, you need face to face service combined with online speed.
As such, I'd recommend the following three banks who all pay over 2% interest on their current accounts and provide telephone /
online services to back it up!
ABBEY NATIONAL (but poor if you overdraw occasionally)
ALLIANCE & LEICESTER (good if you overdraw, but where is your nearest branch?)
HALIFAX / BANK OF SCOTLAND (not Royal Bank)
The only drawback with the last one is the need to fund your account with at least £1,000 a month, but I think the other ones require this too.
If you really think you can go it alone, the likes of Cahoot, Firstdirect, Intelligent Finance and Zurich are probably the best buys. But if your Cahoot account goes wrong, you can;t walk in to an Abbey National branch to resolve it!
Summary:
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