Banks Threaten ATM Charges

stclair

Are the banks on a death wish or something? Could this also be the end of free banking?

http://www.express.co.uk/posts/view/141727/Banks-threaten-ATM-charges

rb10

Charging customers for using hole-in-the wall cash machines and internet banking are just two ideas being considered by hard-up banks.

I really don't think this can happen.

If my bank charged even a tiny amount for either of these two services, then I'd be gone in a flash.

Surely although internet banking must cost a fortune to run, it must save a lot of money, in terms of people getting paper-free statements, and must also reduce queries to the bank, as people will check their own balances and transactions by phone or in a branch instead.

I'd have thought that it's more likely that we see credit interest being scrapped, or heavily reduced, on current accounts (although there are a few banks that are there already).

stclair

Personally I think it would be a really bad move if the banks did try and enforce these rumoured new charges.

I would not let any bank charge me for withdrawing my own money. I kills me to pay the £1.75 charge at the moneybox machines dotted in shops and pubs etc I think it totally disgusting.

chambta

No reliable source in the story. A total non starter.

stclair

If that dont happen the banks will have to do something to recoup some of the money that may possibly be paid out in bank charge claims.

How else they gonna do it?

sequence

stclair wrote: »

If that don't happen the banks will have to do something to recoup some of the money that may possibly be paid out in bank charge claims.

How else they gonna do it?

Please Mr Darling, we've just paid out 3 billion in bank charge rebates, we desperately need another bailout or else we'll not be able to pay our bonuses this year.....


You know it makes sense :rolleyes:

Inactive

stclair wrote: »

If that dont happen the banks will have to do something to recoup some of the money that may possibly be paid out in bank charge claims.

How else they gonna do it?

Rest assured it will be funded by customers that do manage their accounts properly.

pie81

I don't really understand the posters who say "I would not let a bank charge me" or "I'd be gone in a flash".

What if all banks start imposing these charges?

never-in-doubt

pie81 wrote: »

I don't really understand the posters who say "I would not let a bank charge me" or "I'd be gone in a flash".

What if all banks start imposing these charges?

LOL, yea most banks already charge so not much will change really....

Rafter

Gonna get shot down for this, but why shouldn't banks charge for their services?

They set up and maintain 1000's of cash machines in convenient locations, they keep them filled with cash, they cover you if your card is used fraudulently. They look after your money and prevent it from being stolen if you simply kept it on your person or under the mattress. They provide cards that can be used anywhere in the world at millions of locations.

If you keep £1000 on average in your current account earning 0% interest and the bank deposit this at the Bank of England then the bank earns £5 a year in interest at 0.5%

For this you get a bank card and cheque book(say £3 a year), a statement each month (12 x 30p= £3.60) free cash withdrawals (say 2 a month at 50p a time (£12), a branch where you can make deposits (say 6 visits a year at £2 per time (£12). So costs so far about £30 for £5 of interst income and we haven't started on the internet sites, fraud costs, losses from customers who get into difficulty etc.

Now do you see why banks have to charge such high rates of interest on overdrafts and have charged penalty fees?

We have got used to the idea that banking is free in this country. When interest rates are 5% the numbers stack up, because the bank earns enough interest to cover their costs, but if you want to earn interest on your current account or when rates are way down at 0.5% then the numbers just don't work.

The only reasons banks can afford to pay interest or offer free banking is if they cut services, outsource to cheaper countries, give you the hard sell on other products or 'upgrade' you to premium accounts.

If you want your local branch to stay open, want UK call centres, want interest on your current account then you are going to have to pay the real cost of the services the bank provides.

R.

PS - I don't work for a bank!

never-in-doubt

Rafter wrote: »

Gonna get shot down for this, but why shouldn't banks charge for their services?

Ooooh, you've just crossed the line mate - that's it for you now!! :eek: :eek: :eek:

* Rafter desperately trying to ressurect his forum-cred after such a bonkers pro-bank post!