According to a recent study on current account holders in the UK, it has been revealed that people who have switched to a new bank account have had problems.It was found that a large majority of bank account holders had difficulties when switching and that the bank also did not offer any help with the issue.This recent study backs up the main reason why many people do not switch current accounts for many years or perhaps years, as the process is seen to be too difficult or more trouble than its worth. The problem lies for consumers that by not switching bank accounts, consumers are then missing out on cheaper banking with another bank.See our current accounts comparison table for the latest offers. Plus, reading our guides and tips pages can offer consumers more detailed information and money saving hints.
The head economist from Lloyds TSB has commented on the unchanged base rate announced today, explaining that it was the need to keep a lid on inflation that led to the decision.
Although there is still a real threat of further economic slowdown the Bank of England could not afford to cut the base rate again since the underlying rate of inflation is higher than it should be. As the Lloyds TSB pointed out, a further base rate cut could fuel more rises in inflation, completely the opposite of what is needed.
He went on to say that, as far as Lloyds TSB can see there will need to be more indications that the economy really is in a slowdown mode before base rates can be considered for reduction again.
The first half of 2008 has seen Lloyds TSB profits fall 70 percent compared with the same period last year, at GBP599 million.
The biggest cause of the reduced profit figures was a devaluation of the banks assets thanks to the global economic downturn. Taking this factor out of the equation Lloyds TSB has actually performed very well, especially in the retail banking sector. On this basis they actually increased their shareholder dividend, putting it up by 2 percent to 11.4 pence per share.
A Lloyds TSB spokesman, discussing the results, said that the bank was not directly associated with the American sub-prime market that collapsed so spectacularly and so has been quite well sheltered. The actual performance of the bank when their asset devaluations are removed has been an increase in pre tax profit of 11 percent, something that bodes very well for the future.
