A brave new world of banking

dchurch24

Just to answer and ask a question:

To the poster who puts in 200 quid a month to his C/A - I'm sure you are not the norm in this case - most people do earn more than 200 quid a month. FD charge £37.50 for a breach of their contract - this is a profit - according to Which!'s conservative estimate 1 in 4 people are subject to these charges each week - say they have 10000 customers (just a random figure) then that's £375000 per month (£4500000 pa) untaxable and unVATable profit. We both know that they have more than 10k customers.

It's just not feasable that FD do not make a profit from it's current account holders.

To answer the above post: banks are legally required to have a *pool* just like insurance companies are - they are allowed to have the pool drop to 60% of monies that are *owed* outwards - i.e. if everyone took all their money out in one hit - so at least 40% of what you put in is being used elsewhere. If your account gives you a return of .5% APR and inflation is 3% - then clearly even if the money stood stagnant, the bank would be making 2.5% - surely you can understand the relevence of the rate of inflation now?

Anyway, back to the orig. point: Does anyone have any figures regarding how many customers FD have lost since they introduced this charge?

It would be interesting to know if anyone actually did move, or just sat back in apathy and let them win.

[Deleted User]

current accounts cost banks naff all to service, computers are cheap employees and plastic cards cost pennys to make. The only costs are running the branches and the cheque clearance centres, which are still pennys when that cost is divided between all customers.

However they make billions lending that money to overdrafts and credit cards at 20-40% APR a pop and also playing the markets. Thus giving away 100 quid in a bag bonus is pennys to them.