Is it time to end ‘free’ banking?

Maat

A monthly fee would hit the most disadvantaged in society the hardest and would be totally unacceptable to me. The banks get to use our money for their investing (sometimes extremely badly, as we've seen in the last few years) and so they're still making a profit out of us whether they charge us or not.

For people struggling to survive on benefits or low incomes it would be potentially disastrous. For some 'having no money' means exactly that and it would price people out of having bank accounts. Now try to imagine dealing with your financial matters without a bank account.

happyinflorida

Banks are making £billions - they make money out of absolutely everything to do with banking - from charging companies when we use our debit cards to charging businesses for every little thing.

They've mis sold due to the fact that they are greedy and willing to break the law at every opportunity.

I would never, ever pay to bank - they make enough out of us already.

I would like to see an end of banks - they're too powerful - I'd like to see people use credit unions and keep money local.

Lewes in East Sussex are printing their own money - this needs to spread - cut the banks out and bring them down. They are the reason that our country is in debt and why we are all suffering - why they were bailed out I don't know - disgusting - anyone else spends too much, they have to go bankrupt - that is what should have happened.

yuppysoul

keet83 wrote: »

Lets make it easier to understand.
If you have a current account at 5% with £100, inflation is at 10%,
if you keep that £100 in the bank account for a year you will then have £105 however your average shopping basket of £100 a year ago will have increased to £110,
therefore keeping your £100 in the bank account has cost you £5

This has been occurring for a long time now as many current accounts are only 0.1% in credit and a lot of people don't realise that this is actually costing them

What does that have to do with anything I said?

If inflation is 5% or 50% makes no difference at all to whether you are being charged.

You are confusing what you think you should get to justify keeping the money in your bank with the bank actually charging you or taking that money away from you, they are not doing that.

keet83

Try watching the channel 4 programme that was on the other month

"Bank on Dave"

Very interesting

keet83

yuppysoul wrote: »

What does that have to do with anything I said?

If inflation is 5% or 50% makes no difference at all to whether you are being charged.

You are confusing what you think you should get to justify keeping the money in your bank with the bank actually charging you or taking that money away from you, they are not doing that.

Go to this page and read the part close to the bottom then get back to me when you understand how you are losing out having an interest rate lower than inflation.

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

yuppysoul

keet83 wrote: »

Go to this page and read the part close to the bottom then get back to me when you understand how you are losing out having an interest rate lower than inflation.

Again "losing out" is not the same as being charged. If i take all of my money out of the bank and stuff it in a drawer for 5 years or put it in the a bank that gives me 0% interest for 5 years it's all the same.

1) It's free.
2) there are no charges.

Now, whether you are losing out on potential gains is completely another story. That however does not magically mean you are being charged or it's suddenly not free.

keet83

yuppysoul wrote: »

Again "losing out" is not the same as being charged. If i take all of my money out of the bank and stuff it in a drawer for 5 years or put it in the a bank that gives me 0% interest for 5 years it's all the same.

1) It's free.
2) there are no charges.

Now, whether you are losing out on potential gains is completely another story. That however does not magically mean you are being charged or it's suddenly not free.

It's the same as hidden charges, it's costing you whilst the bank makes profit. Their accounts are below inflation, their loans and agreed overdrafts are way above inflation therefore they are making a large profit using your money and not paying you all of your actual money back. That is a 'hidden' charge, nothing is free when banking is involved.

If you read back to my first comment I do state "being charged" in quotation marks

yuppysoul

keet83 wrote: »

It's the same as hidden charges, it's costing you whilst the bank makes profit. Their accounts are below inflation, their loans and agreed overdrafts are way above inflation therefore they are making a large profit using your money and not paying you all of your actual money back. That is a 'hidden' charge, nothing is free when banking is involved.

If you read back to my first comment I do state "being charged" in quotation marks

No, it's not. You are just making up your own definition of "charge". A charge is a fee. You have to pay it.

They are paying all of your money back. It's not a charge because you aren't charged anything.

You may think that they should give you more, but that's completely irrelevant. I put in £100, it stays £100, I never pay anything, no charges at all. They are paying you your "actual" money back.

If I signed a contract with you to borrow £1000 for a year with no interest and a year later you give it back on time. That's it done. got your "actual" money back. I doesn't matter in the mean time if I made £5 or £5,000,000 from your £1000. You were not charged a fee and no it doesn't suddenly become a fee because you say it's "hidden". Hidden or not it's not a fee.

In other words. It's free.

keet83

yuppysoul wrote: »

No, it's not. You are just making up your own definition of "charge". A charge is a fee. You have to pay it.

They are paying all of your money back. It's not a charge because you aren't charged anything.

You may think that they should give you more, but that's completely irrelevant. I put in £100, it stays £100, I never pay anything, no charges at all. They are paying you your "actual" money back.

If I signed a contract with you to borrow £1000 for a year with no interest and a year later you give it back on time. That's it done. got your "actual" money back. I doesn't matter in the mean time if I made £5 or £5,000,000 from your £1000. You were not charged a fee and no it doesn't suddenly become a fee because you say it's "hidden". Hidden or not it's not a fee.

In other words. It's free.

If you think shrinking money is free then thats fine, if you loan be £5 i'll pay you £4 back next year. Does that seem fare enough for you?

yuppysoul

keet83 wrote: »

If you think shrinking money is free then thats fine, if you loan be £5 i'll pay you £4 back next year. Does that seem fare enough for you?

No, it's not fair and it's not what's happening when you put money in a free bank account.

If I put £5 in my bank do I get £4 back? what are you talking about?

If I put in £5, I get £5 back. Minimum.