End of free banking

poppy_f1

i dont pay at the moment for my account and unless forced i wouldnt pay unless there was better benefits on offer
i used ot have a RBS royalties account but never used any of the benefits so got rid and downgraded to the basic current account with them

97trophy

I am sure the banks would love to charge, however I don't think free banking is going away.

Unless, they all collude and act at the same time, the first bank to introduce charges would IMO lose millions of customers. I think they know this and they are all scared to act.

However, I can see the price of addition banking services going up.

storminbalder

BarclaysManager wrote: »

Except that's already been stated that this is seen as a short term solution - and that the UK government wants out as soon as possible, hopefully at a profit.

Once that's done, what do you think they're going to do? Mandate that a business MUST provide a service for free?

Way to kill off any international business interest in the UK.

How on earth will free banking kill off international business interest?

I will also doubt whether these banks will return to the private sector any time soon.

Your bank has behaved the most disgracefully of them all! Instead of taking the bailout from the British Government they prefered taking expensive funding from the Middle East ust to protect their executive pay packets.

If fee paying banking becomes common place in the UK, I will eat my hat. No "mandate" necessary.

YorkshireBoy

storminbalder wrote: »

Your bank has behaved the most disgracefully of them all! Instead of taking the bailout from the British Government they prefered taking expensive funding from the Middle East

More expensive than the 12% coupon RBS and LTSB are having to pay the Government on the preference stock they issued?

97trophy

storminbalder wrote: »

Your bank has behaved the most disgracefully of them all! Instead of taking the bailout from the British Government they prefered taking expensive funding from the Middle East ust to protect their executive pay packets.

I do not understand. Why was that disgraceful?

storminbalder

YorkshireBoy wrote: »

More expensive than the 12% coupon RBS and LTSB are having to pay the Government on the preference stock they issued?

Yes...........

storminbalder

97trophy wrote: »

I do not understand. Why was that disgraceful?

Becaise after their shameless and incompetent behaviour, putting the pay of executives before the interests of shareholders, the vast majority of staff and customers is immoral and downright greedy.

Dylanwing

They will probably do a few packages with discounts to encourage customers to use other services, and maybe Nationwide should only allow free transactions abroad if £x salary is deposited monthly.
Regarding the OFT case, many years ago I was hit by spiralling charges, whereas now my account is well-maintained, so I have been on both sides of the argument. My preference is definitely to reduce overdrawn charges and make everybody pay, as the overdraft fees have been effectively subsidising free banking.

Mark7799

97trophy wrote: »

I am sure the banks would love to charge, however I don't think free banking is going away.

Unless, they all collude and act at the same time, the first bank to introduce charges would IMO lose millions of customers. I think they know this and they are all scared to act.

However, I can see the price of addition banking services going up.

I disagree - I think 'free' banking will remain but the bar at which customers can get this will be raised. I think banking will remain "free" for customers who meet criteria e.g. mandating a salary of at least £xxx per month, holding a savings account with a balance of at least £xxx.

YorkshireBoy

storminbalder wrote: »

Yes...........

They borrowed at 14%, but due to this being tax-deductable the cost was reduced to 10%. When you add the cost of issuing the warrants the cost was comparable to the Government's 12% coupon.

The big advantage to Barclays of course was that they were not beholdant to the Government...and they got to keep their top brass! (which is where, I think, your real beef is?)