According to the BBC, Nigel Farage has launched a fresh attack over Coutts Bank’s decision to close his account.
The bank, owned by NatWest, says customers must borrow or invest £1m or have £3m in savings. Mr Farage previously did not dispute that he did not meet Coutts’ threshold but said the bank had not had a problem with this for the past 10 years.
But why do people want to bank with Coutts?
Do they offer better products? Do they offer better service? Do they offer better value? In all of these areas, the answer is, unlikely. Yet people bank with Coutts. Why?
The reason is status. It makes people feel important. And there is of course a price to pay to feel important. The price is often ignored, because how you feel trumpets logic.
In big-picture terms, you need to decide who you bank with and whether you let the same bank manage your wealth. There are many financial institutions to choose between, all offering similar services and products. Not one is head and shoulders above the others. So it comes down to how people treat you. The sales relationship advisers are key to securing your business.
But when you base financial decisions on how you feel and how you are treated, you can be taken advantage of. In fact, one of the reasons the FCA is introducing Consumer Duty legislation is to ensure the consumer has greater protection. That clearly shows, consumers with institutions have been taken advantage of, even though you don’t know it. Otherwise, why bother introducing this legislation?
Do you bank with Coutts? Do you give them theme your money to invest? In fact, it’s not just about Coutts, it’s about any institution that seeks to capture your wealth for management. If you go direct to these institutions, you also need to employ someone impartial to ensure your interests are not trumped by the bank. Welcome to The Wealth Coach.