First Direct to charge £10 per month for current account

JohnInDebt

southernscouser wrote:

I honestly don't think it will come to that. I'm not gonna pretend I know anything about the industry but look at it this way.

Lets say there are 20 banks. 19 of them charge for a basic account. 1 of them doesn't. All rates are competitive. Who would you bank with and which bank is gonna make the most money?

I agree, but a lot of people are stuck with their accounts as they have an overdraft which they cannot immediately clear. They will also hope for consumer apathy.

This will affect those worse off in society, either those that cannot clear their overdraft or those that don't pay in £1500 every month.

scootw1

JohnInDebt wrote:

I agree, but a lot of people are stuck with their accounts as they have an overdraft which they cannot immediately clear. They will also hope for consumer apathy.

This will affect those worse off in society, either those that cannot clear their overdraft or those that don't pay in £1500 every month.

A case of Robin Hood in reverse here I think. Robbing the poor to feed the rich

goonergirl

I thought the way I read the letter (just shredded!!) that as well as depositing that amount a month you also had to keep the balance at £1500+ to avoid the charge? (could be wrong usually am!)
so they only want rich people to have accounts with them and the upside for them I suppose is they will have less people defaulting on accounts /BRs/IVA s I suppose???? in theory and if you not rich you ll have to pay aint that the way of the world ! (LOL or cry)

a
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Twopints

JohnInDebt wrote:

I agree, but a lot of people are stuck with their accounts as they have an overdraft which they cannot immediately clear. They will also hope for consumer apathy.

This will affect those worse off in society, either those that cannot clear their overdraft or those that don't pay in £1500 every month.

Credit card companies actively encourage Balance Transfers - why shouldn't banks transfer overdrafts?

beer2006

mossy wrote:

An average business account gets charged £5 a month

I'd say it was more than that, like minimum of £15ish a month.

Untill I went to Abbey thats what I was paying and I hardly used the bank. I've met loads of other small businesses who pay the same.

tyllwyd

goonergirl wrote:

I thought the way I read the letter (just shredded!!) that as well as depositing that amount a month you also had to keep the balance at £1500+ to avoid the charge? (could be wrong usually am!)

The Sky news items said it was either/or. But then if you had £1500 saved at 5% for a year, that would be £75 in interest - are First Direct planning to pay a sensible interest rate on a positive balance?

immoral_angeluk

goonergirl wrote:

I thought the way I read the letter (just shredded!!) that as well as depositing that amount a month you also had to keep the balance at £1500+ to avoid the charge? (could be wrong usually am!)
so they only want rich people to have accounts with them and the upside for them I suppose is they will have less people defaulting on accounts /BRs/IVA s I suppose???? in theory and if you not rich you ll have to pay aint that the way of the world ! (LOL or cry)

a
x

People who earn more aren't less likely to default or end up in an IVA... we don't earn £1500 a month and we've never even been in the red on our account and refused an overdraft. It comes down to attitude to money rather than how much you put in but obviously the banks only see the £'s and not the people behind them.
I for one am glad we don't bank with First direct!

bobbadog

I have 2 bank accounts with FD, a credit card and a savings account. I run them all quite well, never late on anything, only have a £200 overdraft, but I don't earn £1500 a month (I clear £1009). As I have two accounts I believe I am exempt, but one account we only use jointly to pop bill money in and nothing else. Mmmm.

I'd swop, but FD have been good to me, they answer the phone quick and their branches are close.

Curlyz

Just heard on the BBC news - you do have to put in £1500 per month and keep above £1500 in you won't pay the charge and if you have more than 1 FD product - so you take out a credit card and never use it or open a savings account and keep just £1 in it you also avoid the charge

(But I think people should still switch on principle - and also to put off other banks doing this)
Martin please use your many platforms to tell people to switch

cathybird

just saw this thread, thanks pennylane, have rung First Direct and closed the current account I had with them (balance £0, I was only keeping it open to annoy them). £120 a year is a lot. I hope this sort of fee doesn't turn into a general trend with the banks but if people keep successfully claiming late payment fees etc back then it probably will, since they try to make money any way they can