My bank–let’s call it The Big Bank–recently let me know of a future new service called “CashBack” where they offer 3% cash back per month on utilities and household bills, e.g. Council Tax, gas, electricity, TV packages, water bills, phone, broadband, and mobile contracts. This “benefit” costs £2 per month.
The bank told me that their calculation for me indicates that I would get approximately £17 per month back. So … the idea is give the bank £2 per month and they give me back £17. Humm. As an “investment” looks to be a no-brainer. Better look more closely.
- Who is paying the delta between £17 and £2?
- I can’t imagine The Big Bank taking the hit. So the service provider is probably subsidising this partially or whole? Why can’t the service providers simply reduce their costs instead of this scheme?
- Use a now-favourite term, this doesn’t seem sustainable. Doesn’t taste well.
Most importantly, why did The Big Bank feel the right to inspect my banking transactions to determine the £17 savings I could incur? They could not compute this possible savings without looking at my banking transactions. Is this proper and in conformance with banking privacy rules, regulations, and law?
Seems as if The Big Bank has a lot of time on their hands to shuffle money around to no benefit to society. I wonder who benefits by how much?
I declined this “benefit”.