On leaving Filbert Street, Banks requested a loyalty bonus from Leicester, and was told by Matt Gillies "We've decided not to pay you a penny. There's to be no compensation payment and that's final." Banks then refused the move until Stoke boss Tony Waddington seemingly negotiated a £2,000 payment out of Leicester. It was only some years later that Banks was informed that Stoke had actually made the payment, not Leicester. Waddington valued good goalkeepers highly, and the two built up a close relationship. During this time, Banks moved to Madeley, Staffordshire. He replaced John Farmer as the club's number one, and kept goal in the last four games of the 1966–67 season, making his home debut at the Victoria Ground in a 3–1 win over his former club Leicester.