Why do some banks charge higher fixed rates to existing customers?

[Brendan Burgess]

The Bank of Ireland is now following the EBS line and charging existing customers more than new customers for fixed rates. But at least Bank of Ireland publish their rates. EBS don't publish fixed rates for existing customers.

 

[NorfBank]

They are now following the EBS line and charging existing customers more than new customers for fixed rates. But at least Bank of Ireland publish their rates. EBS don't publish fixed rates for existing customers.

They always had dual rates unfortunately.

AIB is the only lender who offer the same rates to both new and existing. How long they will continue to do so is the question.

It does make it easier to recommend AIB over BOI or EBS so maybe they are getting decent business on the back of being a little fairer - what a novel idea


[broken link removed]

 

[Brendan Burgess]

Hi NorfBank

I could understand it in the old days, where banks gave discounts to new customers to attract new business.

I don't understand it these days when they are not too pushed about getting new business. Their main target is to get each segment of the business as profitable as possible.

Having said that, they probably now be cheaper for existing customers who might well be struggling.

Brendan