MSE News: 'Free' banking system isn't working, says FSA

adindas

We are not subsidized by the money acquired from overdrawn, Late payment fee customers.

These amount is extremely small compared to the money they make from using our money in our Banks a/c, or saving account with low interest rate and then lend it to people or business which much higher interest rate. who need to borrow.

Without our money the bank will not be able to lend to people and business.

I have bank a/c and saving a/c in the banks that they have been using to lend to other people. FOr that reason I disagree if it is to be said that I am subsidized by the people who pay penalty from overdraft.

stevemcol wrote: »

Free banking for me now please and I'm happy to be subsidised by the 'stupid people'.

John_Pierpoint

http://en.wikipedia.org/wiki/Fractional_reserve_banking#Example_of_deposit_multiplication

Alpine_Star

stevemcol wrote: »

Free banking for me now please and I'm happy to be subsidised by the 'stupid people'.

Hmmm. I'm just trying to think of another industry other personal banking that could possibly get away with charging it's customers solely on the basis of how sensible they are.

brambram

So here are my future plans.
money in
money out. no cash cards, no visa, no DDs, no loans.

opinions4u

Alpine_Star wrote: »

Hmmm. I'm just trying to think of another industry other personal banking that could possibly get away with charging it's customers solely on the basis of how sensible they are.

Well here's a simple example. Tesco (or most other supermarkets).

A big box of Persil washing up powder costs around £12.

Every couple of months, there will be a half price offer reducing the price to £6.

If it doesn't, the half size box is reduced from £6.50 to £3.25.

I will only ever buy the product when it's on offer. Occasionally I will stockpile in the garage.

Those who pay the £12 price are subsidising my opportunity to benefit from the reduced price that will ineviatably come round.

mobilejunkie

Alpine_Star wrote: »

Hmmm. I'm just trying to think of another industry other personal banking that could possibly get away with charging it's customers solely on the basis of how sensible they are.

You can't be trying very hard. Most do. I work in one. The supermarkets do it all the time and so does just about any other sales organisation. You must be easy prey!

Alpine_Star

opinions4u wrote: »

Well here's a simple example. Tesco (or most other supermarkets).

A big box of Persil washing up powder costs around £12.

Every couple of months, there will be a half price offer reducing the price to £6.

If it doesn't, the half size box is reduced from £6.50 to £3.25.

I will only ever buy the product when it's on offer. Occasionally I will stockpile in the garage.

Those who pay the £12 price are subsidising my opportunity to benefit from the reduced price that will ineviatably come round.

In my view it's not comparable.

In your scenario the price difference is dependent on when you buy rather than how stupid you are.

stevemcol

Alpine_Star wrote: »

Hmmm. I'm just trying to think of another industry other personal banking that could possibly get away with charging it's customers solely on the basis of how sensible they are.

Car parking
DVD hire
Litter patrols
Lending libraries
Law courts
Tool rental
HMRC

...any industry or service that financially penalises its customers for acting outside the terms and conditions, ergo customers not behaving sensibly, service providers acting reasonably..

tifo

I read that "last week, the government announced that it had asked banks to end unauthorised overdraft charges for people who go into the red by a small amount". This is linked with this story.

Why would the govt ask the banks NOT to do something already judged as 'fair' by the supreme court ?

It can ask, but are the banks going to/have to listen?

samjef11_2

train conductors
Civil Enforcement Officers
Shop security guards