End of free banking

JamieD_2

Hypothetically then, the OFT rules against the banks in the unfair charges case and as a result the banks phase out all the free to run accounts, leaving the customer's only option as a monthly subscription account.

How'd everyone feel at paying, say £5 per month for their accounts? Would you feel that it was worth it for a drastic reduction on excessive charges?
Or that by paying £60 per year you were subsidising others who don't take as much care over the running of their finances?

PROLIANT

Perfectly fine, I don't mind paying my mobile phone bill every month so why not my bank who looks after my hard earned coin for me?
My bank give me free of charge (at present) a multi-function Visa Debit card, low interest overdraft...cheapest form of borrowing for me, Cheque book, On-Line money management, telephone account access and support and pay me interest for using the free services they provide to me,
not a bad package for free so paying £5 or £10 per month would not phase me one bit, I say bring it on because it might give the "I am irresponsible brigade" a little sniff of reality.

MrsTinks

To be honest... I think it's worth it. And before you ask... I'm one of those annoying people who haven't had a bank charge as far back as I can remember So I truly WILL be paying for other people having claimed Why do I think it's a better way? Because eventually they will start to compete for my business and my money and the cost will go down no doubt... I think the fee you pay will start affecting the rates you get for being in credit as more people start growing savvy about what they are paying for etc and honestly I don't think "free" accounts will ever totally disappear... SOMEONE will offer them and soon the rest will have to follow suit
If anything they should start charging for extra cards on accounts (ie if you loose or damage yours) and for extra facilities like the extended online banking services that some banks offer (like First Direct)

People who fail to run their accounts properly will still be penalised, but now it will be fairly!

darcyvuqua

i pay 12.95 for my hsbc account and i think it money well spent when id the OFT final verdict due to come out anyway???

PROLIANT

MrsTine wrote: »

To be honest... I think it's worth it. And before you ask... I'm one of those annoying people who haven't had a bank charge as far back as I can remember So I truly WILL be paying for other people having claimed

Ditto, if I ever got one for being daft then I would take it on the chin, or if it was a "silly error" I would be nice to one of those lovley customer service people at my bank, a little charm can go a long way.

MrsTine wrote: »

People who fail to run their accounts properly will still be penalised, but now it will be fairly!

I will second that, the accounts that will remain free will most likely be the Solo and Electron type accounts, no overdraft, cheque book or dish-washing service (sorry ) and those who are propa naughty with their money will get kicked in to touch, instead of coming on here looking for sanctuary and forgiveness.

Lokolo

It would depend on the price and the offers. For instance, all I need is internet banking and a card, thats it, I would not be willing to pay £10 a month or whatever for that.

If there are numerous different things so like Bronze, Silver, Gold, Plat etc. each different things costing differently then yep fine.

However with it it will be a lot harder to get savings accounts etc. with internet banking which would be a pain!

PROLIANT

Lokolo wrote: »

It would depend on the price and the offers. For instance, all I need is internet banking and a card, thats it, I would not be willing to pay £10 a month or whatever for that.

If there are numerous different things so like Bronze, Silver, Gold, Plat etc. each different things costing differently then yep fine.

However with it it will be a lot harder to get savings accounts etc. with internet banking which would be a pain!

I think banks have the upper hand on this one, you can't get around without one, your employer will not pay you without one full stop and we pay for everthing else in this rat-race so what the hell, looks like you will have to bite the bullet on this one.

Lokolo

Indeed but with the amount of banks, theres always going to be a cheapskate one.... theres Primark for clothes, Iceland for food, Wilko for general stuff...

darcyvuqua

Lokolo wrote: »

Indeed but with the amount of banks, theres always going to be a cheapskate one.... theres Primark for clothes, Iceland for food, Wilko for general stuff...

haha i shop at all 3 no really i think that the banks of uk will be in this together if the OFT rule agaist them!!! why would they try to undercut each other and end at a loss!

YorkshireBoy

PROLIANT wrote: »

I think banks have the upper hand on this one, you can't get around without one, your employer will not pay you without one full stop

Full stop?

Employers will pay you by BACS into *any* account capable of receiving such payments. Some examples being...

Building society savings accounts
Post Office Card account
Offset mortgage savings account

In fact, any account with a 6-digit sort code and 8-digit account number (plus 'reference' where applicable).

Granted, you may lose the features you currently enjoy with your bank, but that may be the price you pay (instead of £5/10 per month) for having a less than perfect credit file.

For those with a reasonable credit history, full feature free banking will always (at least in the foreseeable future) be available IMHO.

PROLIANT

Lokolo wrote: »

Indeed but with the amount of banks, theres always going to be a cheapskate one.... theres Primark for clothes, Iceland for food, Wilko for general stuff...

True, however we are in a recession now and people will be hard pressed to shop around as business will be forced to trade in a lean fashion more than ever before, the fat will be trimmed well and truly right across the board ergo banks will be tightening up their belts and begin cherry picking customers.