Banks Threaten ATM Charges

Joe_Bloggs

If all banks were to charge a fee such as £1.50 or even £1.99 then the only sensible moneysaving thing to do is to withdraw the maximum amount and to avoid these fees until the money runs out.
1 withdrawal of £300 costing £1.50 is cheaper than 6 withdrawals of £50 costing £9.00 or 10 withdrawals of £30 costing £15.00.

The costs of handling debit cards and credit cards is significant to small retailers. I would face a charge of £1.50 if I tried to use a debit/credit card in a local shop eg newsagent.

J_B.

maginot

Banks generate income by lending out money at a higher rate than they pay for it. The reason why Northern Rock went bust wasn't because they were unprofitable but because they had no cash flow. They lent money at a rate of 6:1 to their deposits this is why they were the first to go when the credit crunch hit and they couldn't get finance for this money they had given out.

The bank I am currently with also generates money from me by me using other products that otherwise I wouldn't have unless I had an account with them.

Yes running a current account is a cost for them, but most businesses will have some form of loss leader to generate income from other areas as well as making them more secure by having more deposits.

nomoneytoday

never-in-doubt wrote: »

Not at all - the charges come off the banks profit to the top brass - it will not affect the normal user! Why do people post this junk with no idea of how a bank actually works?

Charges don't all get paid to the CEO, they go towards the costs of running the business. Not just the specific costs of sending a letter, but the heat, light, rent, rates, wages, systems and infrastructure etc of the branches. If these costs aren't met from bank charges, they have to come from somewhere. It's standard business model 101. Yes I am fully aware of how retail and merchant banks work

never-in-doubt wrote:

We don't need Barclays, HBOS, LBG etc etc - give me a Tesco Bank or Virgin Money Bank anyday of the week - at the end of the day banks are no different (i.e. they are a business) but the main difference is that Tesco & Virgin are not there to screw the consumer daily (like banks)....

Did Tesco and Virgin not historically use mainline (sic) banks behind the scenes, with their own rebranding on top?

Additionally, companies such as Tesco have their own PR issues such as the Free range chickens and HFW. Does this make them an ideal candidate to run a bank?

Profit isn't a dirty word. Neither is free banking when in credit

oxenryd

brightonman123 wrote: »

its OUR money, and WE own the banks (most of them..),, perhaps we should charge THEM to pay our money in, as they are using it to make a nice profit right now..

first bank to start charging for atm withddrawls will surely fail within a week. i will make it my sole mission!

This is a genuine question: I don't understand when people say "WE OWN THE BANKS...." I know tax payers money (which I am too) has gone into them but surely it's the same for NHS, the council..... - people don't go round saying "We own the NHS/ Council" so why about banks?

Inactive

never-in-doubt wrote: »

I think you'll see the likes of Tesco & Virgin flourish when the banks do this - it wouldn't be a bad thing if the banks just went away to be honest, i'd prefer to see Tesco/Virgin banks as opposed to the usual brands that have proven for years, they cannot run a business properly

Perish the thought of Tesco or Virgin running a bank, you could have chosen some better examples NID.;)

never-in-doubt

Inactive wrote: »

Perish the thought of Tesco or Virgin running a bank, you could have chosen some better examples NID.;)

Ahh mate, Tesco is the British Consumers choice - I for one rate them highly and would love to see them take on the banks, moreso cos they have the financial clout to do it. Look at the bigger picture with both companies:

Virgin: Branson sold his megastores at the right time, a year later where is Zavvi?

Tesco: Dumped RBS partnership at the right time, a year later where is RBS?

I personally think they are astute and well worthy of a chance at being numero uno... similarly, I was upset when Camelot won the lottery rights - at least Branson would not waste millions on ruddy arts! I mean who gives a chuff about the arts! If they sell 10 million tickets, then 10 million should be the jackpot (minus costs).

Obviously you realise this is my ideal and not something I expect to happen lol..... :rolleyes:

never-in-doubt

nomoneytoday wrote: »

Charges don't all get paid to the CEO, they go towards the costs of running the business. Not just the specific costs of sending a letter, but the heat, light, rent, rates, wages, systems and infrastructure etc of the branches. If these costs aren't met from bank charges, they have to come from somewhere.

LOL, well obviously! :rotfl:

nomoneytoday wrote: »

Did Tesco and Virgin not historically use mainline (sic) banks behind the scenes, with their own rebranding on top?

Yup RBS & MBNA respectively. But we all know it'd cost millions to start a bank and get the licence..... its how they get 1 foot in the door!

nomoneytoday wrote: »

Additionally, companies such as Tesco have their own PR issues such as the Free range chickens and HFW. Does this make them an ideal candidate to run a bank?

OMG! Are you for real? I think the banks have 'bigger' PR issues right now, don't you?

nomoneytoday wrote: »

Profit isn't a dirty word. Neither is free banking when in credit

I pay £12.95 for my account each month and am more than happy - cos I agreed to it at the time I joined.

stclair

Inactive wrote: »

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

Im totally with you on that one :T

simon_templar_2

brightonman123 wrote: »

its OUR money, and WE own the banks (most of them..),, perhaps we should charge THEM to pay our money in, as they are using it to make a nice profit right now..

first bank to start charging for atm withddrawls will surely fail within a week. i will make it my sole mission!

HSBC, Barclays, Abbey, Alliance & Leicester, Yorkshire Bank, Nationwide all not 'state' owned.

RBS/Natwest, HBOS and Lloyds 'state; owned. I make that 3 out of 9, hardly most of them.

rb10

simon_templar wrote: »

HSBC, Barclays, Abbey, Alliance & Leicester, Yorkshire Bank, Nationwide all not 'state' owned.

RBS/Natwest, HBOS and Lloyds 'state; owned. I make that 3 out of 9, hardly most of them.

... and only partially state owned, at that (particularly in the case of HBOS/Lloyds).