Time to end free banking? Poll help needed

MPH80

Rafter wrote: »

The government want people to have bank accounts - it is a much cheaper and safer way of moving money for benefits, salaries and purchases than cash.

The banks have a privileged position of holding those cash balances that allows them to lend at an interest premuim to make profits and cover costs and credit losses.

I don't think the poll as drafted will tell you anything you don't already know - that the vast majority (generally those who don't use an overdraft) would prefer the status quo of free banking in credit.

I'd ask the questions in the following way.....

1. do you regularly use your overdraft or are you generally in credit?

2. Do you believe that banks should offer free simple accounts which, in return for not paying credit interest and from charges levied on retailers and businesses: offer a debit card, online and telephone servicing and free cash withdrawals at your own banks ATM machines?

3) Do you think that more expensive services such as writing cheques, overseas card use, branch based/ face to face banking should be paid for by:

A) The Status Quo: Hidden and obscure charges and commission on foreign transactions, higher overdraft rates and fees for borrowing customers, inappropriate cross selling of investment, insurance and packaged accounts to less well educated and vulnerable customers.

Modest but regulated and clear charges for these additional services that reflect cost plust a modest profit margin. (pay as you go)

C) Different monthly fee or minimum balance requirement to avoid these charges and give access to enhanced features - a packaged account. (a bit like a phone contract with a 'free' handset)

I don't mind whether it is B or C - In fact I think it should be both so you can see if your package is worth it, but A isn't 'fair' or sustainable and as long as basic banking is free I don't see why I shouldn't pay a bit extra to avoid others being ripped off.

R.

I think your options need some editing to make it a bit less biased ... how about:


A) The Status Quo: [STRIKE]Hidden and obscure[/STRIKE] Terms and conditions showing charges and commission on foreign transactions, higher overdraft rates and fees for borrowing customers, [STRIKE]inappropriate[/STRIKE] cross selling of investment, insurance and packaged accounts to [STRIKE]less well educated and vulnerable[/STRIKE] customers, leaving customers to make their own choice informed or not

[STRIKE]Modest but[/STRIKE] regulated and clear charges for these additional services that reflect cost plust a [STRIKE]modest[/STRIKE] profit margin. (pay as you go)

(Note: Everyone's definition of modest is different - so suggest it would be unfair to include this word)

C) Different monthly fee or minimum balance requirement to avoid these charges and give access to enhanced features - a packaged account. (a bit like a phone contract with a 'free' handset)

iAMaLONDONER

MSE_Martin wrote: »

Hi folks,

We're planning to run a poll on the site later. I want to see if you've any more ideas for options for the poll.

My current VERY ROUGH draft is...


Is it time to end ‘free’ banking?

We’velong said ‘free’ banking doesn’t exist. Its ‘fees-free’ for those in credit, yet they usually pay no interest and charge the overdrawn vast amounts.

Many policy wonks are calling for the end of 'free' banking? Arguing it means banks miss-sell more as they need cross sell to subsidise it.

If you could change things which of the following choices would you prefer?


OPTIONS

- Monthly fee:You pay a fee each month then no other charges (inc overdraft)

- Transparent fees: ie you pay small amount for everything you do eg cashwithdrawal

- No change: Keepthings as they are

NOTE THIS ISNT ABOUT DISCUSSING THIS, THAT'LL COME LATER - MORE TO SEE IF THERES ANYTHING PEOPLE THINK SHOULD BE IN THE POLL BEFORE WE LAUNCH IT?

ALL (POLITE) SUGGESTIONS WELCOME

Thanks in advance

Martin

So where's the poll?

iAMaLONDONER

MPH80 wrote: »

I think your options need some editing to make it a bit less biased ... how about:


A) The Status Quo: [STRIKE]Hidden and obscure[/STRIKE] Terms and conditions showing charges and commission on foreign transactions, higher overdraft rates and fees for borrowing customers, [STRIKE]inappropriate[/STRIKE] cross selling of investment, insurance and packaged accounts to [STRIKE]less well educated and vulnerable[/STRIKE] customers, leaving customers to make their own choice informed or not

[STRIKE]Modest but[/STRIKE] regulated and clear charges for these additional services that reflect cost plust a [STRIKE]modest[/STRIKE] profit margin. (pay as you go)

(Note: Everyone's definition of modest is different - so suggest it would be unfair to include this word)

C) Different monthly fee or minimum balance requirement to avoid these charges and give access to enhanced features - a packaged account. (a bit like a phone contract with a 'free' handset)

Well said- if there is no free banking , the banks will make an even bigger profit

MoneySaverLog

iAMaLONDONER wrote: »

So where's the poll?

Probably been and gone as this thread is nearly a year old