dlake02

Could the common thread here be "HSBC ?" They really are f-ing useless (in both countries...) It's a shame, cos when First Direct started all those years back, it was like a breath of fresh air in a very staid market. Now they no longer look innovative or in fact competent.

Anyway, up-date here is that I spoke to the Customer Services manager at my local branch and have arranged to see my Relationship Manager when she is back from holiday. Yes, they now need to see $100k average balance in order to retain "free" Premier and they have "reviewed" the arrangements they have in place with large Corporates for relocating employees, and we've dropped off the bottom of the list. So, this afternoon's phone call is to HR

He did wish me a "nice afternoon" after telling me that I am going to be $600/year worse off. Talk about style over substance...

But I'm caught by the short-and-curlies. I don't have that sort of cash slopping around, but I do have payments in-and-out of the UK, France and the US and changing that little lot is a nightmare of a job that would cost me more than $600/year in plane tickets.

GeoffM

Yes, well my experience of business HSBC in the US has been just as bad (sending statements to my old address, despite me driving 65mi to the bank to change it, and them wanting me to drive again to change it again). But the point is that the DD system is wide open to abuse and misuse. Having said that, I do miss it.

I don't know how much transferring you do in/out of the US but I do 1-3 transactions a month at the moment. Five minutes on xe.com and my UK bank website and done. No, it's not instant (48-72hrs for me typically) but it works. Sounds like you've got more complex setups though.

hungryhorace

+1
The US banking system is 20+ years behind the UK's. It's abysmal, yet no one here really seems to realise how god awful it is.

You need a separate bank for each of your requirements. For example, I have a local credit union account that allows me to receive wires free of charge.

AmerLisa

So why don't you bank with the credit union?

Pulaski

If you'd read my earlier posts above, you'd realise that it is not now "the system", but that many of the banks have not implemented changes that reflect the technological changes to "the system" by "Check 21". Many US banks don't seem to have the financial or technical resources to take advantage of the technology, but that is not the fault of "the system".

hungryhorace

Because they're generally crap for current account services. They just have one redemption, the lack of incoming wire fee.

hungryhorace

There is no faster payments system here.

So a superb 'system' that the UK (which was originally copied from the Nordics) and other western european countries have is a decade+ away from being implemented here.

Unless you're aware of a system that's exactly equivalent to the FPS and can enlighten me?

Michael

I think there is another issue is that the larger banks feel that people will use them even of they provide limited free services so they charge for wire transfer fees, fees for transfers to your account in other banks, bill pay fees, check fees, minimum balance fees, etc..

As some pointed out, some credit unions offer superior free service as compared to large banks but don't have the branches or ATMs outside their area.

It appears that the smaller banks and credit unions are currently the driving force to implement the new technology in order to gain or hold market share. Large banks won't give those services away free unless they don't have an alternative.

Pulaski

Agreed, they will charge for or not provide a service until they feel their market share is threatened. When I came here banks were trying to charge, typically $5/mth for internet banking. WTF? That soon went away.

Pulaski

I can receive credits and make payments in 1-2 days. When interest rates are so low, why would I care if transfers were faster? .... They're already fast enough for my needs.

Michael

There are some differences.

US:

3.8 million sq miles
315 million population
6,000 independent banks plus 150 foreign banks

UK:

94 thousand sq miles
62 million population
5 independent banks plus 18 foreign banks

hungryhorace

'free' payments between your accounts that you own (note: that you OWN, not others), take 3 days via the ACH system here.

Another question, so how do I make a payment to someone within 1-3 days for *free* within the USA between different financial institutions.

hungryhorace

I'm fully aware of the differences; I'm just making the point that the point concerning banks taking advantage of 'systems' is null and void. Those systems that UK / European banks have simply don't exist here. The FPS is just one example.

Michael

Capital One 360 (formally ING Direct) offers that service (3 days) free plus a high interest rate (compared to other US banks) for their checking account. You can also open their savings account at the same time and currently get 0.75% interest rate on any balance and have instant transfer to your checking account.

https://home.capitalone360.com/

Pulaski

(i) I have my affairs organized so I don't regularly need to make transfers between my accounts at the two banks where I have accounts. (ii) When I do need to make transfers I usually get same day or occasionally overnight credit. (iii) Most bills I pay give me same day credit, including mortgage payments to a third bank, and payments to credit card accounts at a fourth and fifth. What use would I have for anything more?

My Honda isn't a Ferrari, I wish it was, I'd love to own a Ferrari, but honestly, my Honda does everything I need from a car. Sometimes I need a truck, so I have one of those too; it can do a few things even a Ferrari can't. Banks are the same.