Rate cuts could spell end of free banking!

Andrew64

Why keep money in a bank then?? I'll take all mine out and find somewhere else.

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=480142&in_page_id=7

As the Bank of England cut rates further towards zero today - down from 1% to 0.5% - the future of free banking will be in doubt as bank profits are threatened. High Street banks could start charging customers to have accounts in a bid to recoup falling profits related to lower rates.

brooza

Charging money for 0.1% interest... Looks like Premium Bonds are the way forward!

malik999

This article really is ridiculous scare mongering.

NPowerUser

Andrew64 wrote: »

Why keep money in a bank then?? I'll take all mine out and find somewhere else.

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=480142&in_page_id=7

As the Bank of England cut rates further towards zero today - down from 1% to 0.5% - the future of free banking will be in doubt as bank profits are threatened. High Street banks could start charging customers to have accounts in a bid to recoup falling profits related to lower rates.

Thankfully, I could live without a bank account for a few years.

Only 3 DD's a month from my bank account in the form of NPower/AOL/Sky. I suppose I could prepay AOL in advance, find an energy supplier where I can pay in cash the old fashioned way and cancel Sky which I could live without.

Mortgage paid off and all the work I do I get paid in cash anyway.

Suppose I could just open another building society account for paying in the odd amount of money or rasing cheques to pay someone?

RayWolfe

malik999 wrote: »

This article really is ridiculous scare mongering.

What? From the Daily Mail? Surely not?

NPowerUser

brooza wrote: »

Charging money for 0.1% interest... Looks like Premium Bonds are the way forward!

National Savings and Investments seem to be attracting savers by the bucket load.

I assume Premium Bond savings are included in report?
http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=331610

Falling building society rates down to 1/4% or even less, made me decide that Premium Bonds were worth a punt.

I can't see interest rates moving north anytime soon and inflation will be falling to almost zero, so not much of a gamble IMHO.

NPowerUser

Andrew64 wrote: »

Why keep money in a bank then?? I'll take all mine out and find somewhere else.

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=480142&in_page_id=7

As the Bank of England cut rates further towards zero today - down from 1% to 0.5% - the future of free banking will be in doubt as bank profits are threatened. High Street banks could start charging customers to have accounts in a bid to recoup falling profits related to lower rates.

Don't forget the banks face a massive bill for refunding all those bank charges, someone has to pay for it and it will probably end up being customers.
http://www.birminghampost.net/birmingham-business/birmingham-business-news/financial-business-news/2009/02/27/end-may-be-near-for-free-current-account-banking-65233-23022909/

dave461_2

Last time i looked A+L were offering £150 to join them and Halifax were offering £5 a month.
Hopefully banks will start charging for accounts where people dont pay there wages in so that all this scaremongering can stop!

Blah99

I already pay a fee to have a bank account. It's commonplace in the US to pay, too.

I don't see what the big deal is, personally.

Stavros_3

brooza wrote: »

Charging money for 0.1% interest... Looks like Premium Bonds are the way forward!

I'm gonna pass on this one

davidmckay

NPowerUser wrote: »

Thankfully, I could live without a bank account for a few years.

Only 3 DD's a month from my bank account in the form of NPower/AOL/Sky. I suppose I could prepay AOL in advance, find an energy supplier where I can pay in cash the old fashioned way and cancel Sky which I could live without.

Mortgage paid off and all the work I do I get paid in cash anyway.

Suppose I could just open another building society account for paying in the odd amount of money or rasing cheques to pay someone?

Sky will take payment by continuous credit card, so no need to cancel unless you want to