is this just a rumour

agentsquirrel_2

i've either misheard or misread somewhere that the banks are seeking to close basic bank accounts as they dont make any money off them. i have a step account with nat west and i've had it for years for my child benefit payments. i must admit though everytime i go into the bank to withdraw cash they ask me about upgrading the account even though i'm happy with it as i can't go overdrawn and have no credit on it.

i really need to know if this is true or not as i don't fancy having to go thru the rigmarole of dealing with child benefit office and trying to explain to them that my account is now differant as i know a lot of folks have had them try to pay it in to the now closed account and then not paid it at all because they didnt write the number down properly. anyone got any idea if this is true or just one of those rumours that tend to fly about. cheers guys. :beer:

Tori_Bellatrix

I've not heard that rumour

It is true that banks do not like to openly offer their basic accounts but I think they have been 'encouraged' by government to provide basic banking facilities ... mainly to those who would be financially excluded from gaining a 'normal' current account.

iceicebaby

I have recently opened a nat west step account. I cant see then letting me open it if they were planning on stopping them?

jonesMUFCforever

LTSB no longer open basic accounts just the cash variety .
They used to be fee free but if they have to return D/D or S/O as unpaid you will now get charged the full £38 that a normal account customer has to.

sgx.saint

@OP - What is the source of this rumour?

I personally have not seen nor head of any article suggesting this to be the case. If the banks were wanting to close basic accounts then they would be doing so against the better judgement and recommendations of the FSA.

Moreover, at the end of the day, all custom is good custom. Basic account holders may not generate a large income for the banks, but in reality neither do normal consumer customers either. The big money is in business banking, and always has been.

Its not really good business sense to turn away a section of your customer base, and again even if the figures suggest that this would be the best option, the banks are not really thinking laterally. Basic Account customer could recommend a friend, family member to the bank, as a result the bank gain a new customer and a new relationship. ... Anyway, I think you see my point here.

EvilEdna_2

This could be linked to another rumour/report - if the banks are forced to reduce their charges to something more reasonable there was talk of them removing basic banking or starting to charge for accounts. Could be where it came from?

marcellep

Halifax are making changes to there Basic account, You will be no longer to use there counter services for certain transactions

Morglin

Some of the banks did "suggest" that in order to recoup the money they were "losing" with having to refund some bank charges, they may well look at charging fees for all accounts (unless the customer had a mortgage or credit card with them).

I think First Direct have started the ball rolling with this (?).

The banks governing body pointed out in one of the newpapers last week that in other countries paying a monthly fee is the norm.......

The government forced all those in reciept of benefits or pension to open either bank accounts or a Post office Card account as they abolished pension books.

The problem is now, that the PO card accounts are being stopped (not sure when) as they are too expensive for the DWP to use. (Pity no one thought of that before millions were invested in the scheme).

At that point, the banks will have a "captive audience" as benefits will still need to be paid in - and knowing banks, that's when they will introduce charges on all accounts.:rolleyes:

But, hopefully, they will be forced to provide non-fee basic accounts for those on low incomes.

Lin