Savers to pay for Accounts !!!

luvpump

http://www.telegraph.co.uk/finance/personalfinance/savings/4968067/Savers-set-to-pay-for-bank-accounts-as-Bank-of-England-reveal-rates-have-hit-record-low.html

:eek:

BruceyBonus

Another scaremongering news story

Blah99

Again, I don't see the big deal about paying for a bank account. We expect to pay for everything else, so why not a bank account? Banks have to pay for the ATM network, premises, cashier staff etc etc that let you access your money, so why wouldn't you pay for that service.

People pay for a safety deposit box or a storage unit, which is hardly different.

Doomcow

Blah99 wrote: »

Again, I don't see the big deal about paying for a bank account. We expect to pay for everything else, so why not a bank account? Banks have to pay for the ATM network, premises, cashier staff etc etc that let you access your money, so why wouldn't you pay for that service.

People pay for a safety deposit box or a storage unit, which is hardly different.

we lend the banks money to give to others in form of loans. without deposits in savings accounts who knows where we'd be.

bank accounts should be "free" to use - they make all their money on interest from repayments of loans etc.

adambro

I'd agree with BruceyBonus, I don't think these suggestions are particularly credible.

Why shouldn't we have to pay for savings accounts? Because we are lending the money to the banks to lend out to borrowers at higher rates so they are making a profit with our money.

Blah99

Doomcow wrote: »

we lend the banks money to give to others in form of loans. without deposits in savings accounts who knows where we'd be.

bank accounts should be "free" to use - they make all their money on interest from repayments of loans etc.

Banks lend on a reserve ratio. If Joe Average deposits his £2k salary into his current account, his bank is not rolling that 2k up and parceling it out as a loan. It's vapour money - if it wasn't, Joe wouldn't be able to withdraw it when he needs it. Despite that his bank still has to provide the cash machine, the online banking, the cashier, the back office staff, the paper and the stamp for his monthly statements etc etc etc though.

For loans, banks do make money on the margin, but I don't see what that has to do with charging retail depositors for banking facilities. It's like saying "I paid Tesco for my shopping so I should get some minutes on my mobile for free".

Also, what about customers who bank at A but take a loan from B? That's like saying "I paid Asda for my shopping so Tesco should give me free minutes".

One has nothing to do with the other.

foofi22

adambro wrote: »

I'd agree with BruceyBonus, I don't think these suggestions are particularly credible.

Why shouldn't we have to pay for savings accounts? Because we are lending the money to the banks to lend out to borrowers at higher rates so they are making a profit with our money.

Err..is it just me, or have you completely contradicted yourself there?

Blah99

Semantics.

Why shouldn't we have to pay for savings accounts, I'll tell you why - the banks make money from us anyway!

or

Why shouldn't we have to pay for savings accounts, they cost money and it's only right to pay for a service.

Never mind, I understood what you meant, even though you're wrong

adambro

Must try harder at grammar. :wall:

LesU

Blah99 wrote: »

Again, I don't see the big deal about paying for a bank account. We expect to pay for everything else, so why not a bank account? Banks have to pay for the ATM network, premises, cashier staff etc etc that let you access your money, so why wouldn't you pay for that service.

People pay for a safety deposit box or a storage unit, which is hardly different.

I think the difference here is that I would be a little bit annoyed if I came back unexpectedly to my deposit box, only to find nothing in it because the bank was lending it out short term to another paying customer!
It's a bit like a letting agent telling you there is no income coming in from your property, charging you letting fees, and then finding he's letting it out to someone else on the side and pocketing the money.

Stavros_3

Its a government cospiracy so you all put your money into NS&I, and they take all your lovely jubbly interest