FCA 'won't stand in the way' of an end to free banking, says boss

sheramber

icsys said:

Looks like the City Watchdogs have paved the way for banks to charge customers for current accounts in an end to free banking.

The FCA have stated the regulator would 'not stand in the way' of banks opting to charge customers to hold accounts. 

While some providers already impose fees to maintain certain accounts that offer added benefits, the majority of current and savings accounts are fee free.

This is, apparently, in response to the banks being concerned about spiraling costs in the wake of regulatory changes.

Maybe more truthfully they want customers to off-set the massive bills they face to compensate consumers who were mis-sold and overcharged for car finance.

More likely to to cover the payouts to those who have been scammed.

I can remember when banks charged for direct debits and standing orders, 

Nasqueron

Kim_13 said:

Would they be allowed to say you can’t have X savings account without having a current account if you had to pay for said current account?

I agree with the comment that people are basically obliged to have two current accounts now - especially as with branch closures, often it’s not a reasonable distance to expect someone to travel at their own expense having been told they can only have access their wages/benefits upon production of ID at a branch. You should only be out of pocket if you’ve actually done something wrong.

They already can, for example the Club Lloyds account (was £3 a month, waived with £2000 pay-in) had a special saver rate with extra 1% interest on top of the basic one 

jameseonline

Club Lloyds used to be £1500 a month pay in, still there's ways around pay ins, my Club Lloyds Regular ends today so looking forward to having the money back I put in plus the interest, probably won't appear for a day or so but yea.

I got Disney Plus as a perk, hardly used it but let the gf use it🤣😁

steven141

If banks started charging for every account, I would probably close a lot of my secondary accounts. 

I currently have the following current accounts:

Royal Bank of Scotland x 1
NatWest x 1
Ulster Bank x 1
Nationwide x 2
Lloyds Bank x 1
Chase x 1

I also have 9 savings accounts and 2 credit cards.

I know that this seems excessive but the NatWest and Ulster Bank accounts opened for the switching deal and I'm keeping them and going to use them in some way as an appreciation for my £600 I gained from NatWest Group. 

The rest all have their purpose in some way  

Bridlington1

steven141 said:

If banks started charging for every account, I would probably close a lot of my secondary accounts. 

I currently have the following current accounts:

Royal Bank of Scotland x 1
NatWest x 1
Ulster Bank x 1
Nationwide x 2
Lloyds Bank x 1
Chase x 1

I also have 9 savings accounts and 2 credit cards.

I know that this seems excessive but the NatWest and Ulster Bank accounts opened for the switching deal and I'm keeping them and going to use them in some way as an appreciation for my £600 I gained from NatWest Group. 

The rest all have their purpose in some way  

Excessive? I think I'd probably go round the twist if I had so few accounts.

I've currently got 14 current accounts (assuming I've counted correctly) plus over 100 savings accounts, 4 credit cards and some investment accounts left over from free investments I've had. 

Kim_13

Nasqueron said:

Kim_13 said:

Would they be allowed to say you can’t have X savings account without having a current account if you had to pay for said current account?

I agree with the comment that people are basically obliged to have two current accounts now - especially as with branch closures, often it’s not a reasonable distance to expect someone to travel at their own expense having been told they can only have access their wages/benefits upon production of ID at a branch. You should only be out of pocket if you’ve actually done something wrong.

They already can, for example the Club Lloyds account (was £3 a month, waived with £2000 pay-in) had a special saver rate with extra 1% interest on top of the basic one 

That's fair enough; a person can choose to ensure the criteria are met or to pay the fee.  It's not the same as saying you can only have this savings account if you also pay for this current account, as an alternative was given.

GeoffTF

Kim_13 said:

Nasqueron said:

Kim_13 said:

Would they be allowed to say you can’t have X savings account without having a current account if you had to pay for said current account?

I agree with the comment that people are basically obliged to have two current accounts now - especially as with branch closures, often it’s not a reasonable distance to expect someone to travel at their own expense having been told they can only have access their wages/benefits upon production of ID at a branch. You should only be out of pocket if you’ve actually done something wrong.

They already can, for example the Club Lloyds account (was £3 a month, waived with £2000 pay-in) had a special saver rate with extra 1% interest on top of the basic one 

That's fair enough; a person can choose to ensure the criteria are met or to pay the fee.  It's not the same as saying you can only have this savings account if you also pay for this current account, as an alternative was given.

There are examples of that. You cannot have a Santander Edge Saver unless you have an Edge Current Account. HSBC will not allow you to Open an InvestDirect stock broking account unless you have a current account with them (or First Direct). It has been like that for decades.

Kim_13

steven141 said:

If banks started charging for every account, I would probably close a lot of my secondary accounts. 

I currently have the following current accounts:

Royal Bank of Scotland x 1
NatWest x 1
Ulster Bank x 1
Nationwide x 2
Lloyds Bank x 1
Chase x 1

I also have 9 savings accounts and 2 credit cards.

I know that this seems excessive but the NatWest and Ulster Bank accounts opened for the switching deal and I'm keeping them and going to use them in some way as an appreciation for my £600 I gained from NatWest Group. 

The rest all have their purpose in some way  

I'm a couple behind you.

Halifax into which I am paid and bills out (and they offer the facility to pay in a cheque via app.) 

Chase for spending.

Nationwide (closest branch, my only chequebook if a cheque is needed and my oldest account, receiving Premium Bond prizes.)
 
The others I have less of a need for: 

NatWest - They were my main account once upon a time, but I had a far better experience with Nationwide and switched out once the difference in age between it and Nationwide was minor. Rejoined in 2022 for the Digital Regular Saver and a switch bonus.

Metro - Switching in future, but that's optional, so I would find it less objectionable to have to pay or close. The others are either required for me to be able to manage my finances effectively or because of a stipulation by the bank.

Savings accounts... lost count.

steven141

Bridlington1 said:

steven141 said:

If banks started charging for every account, I would probably close a lot of my secondary accounts. 

I currently have the following current accounts:

Royal Bank of Scotland x 1
NatWest x 1
Ulster Bank x 1
Nationwide x 2
Lloyds Bank x 1
Chase x 1

I also have 9 savings accounts and 2 credit cards.

I know that this seems excessive but the NatWest and Ulster Bank accounts opened for the switching deal and I'm keeping them and going to use them in some way as an appreciation for my £600 I gained from NatWest Group. 

The rest all have their purpose in some way  

Excessive? I think I'd probably go round the twist if I had so few accounts.

I've currently got 14 current accounts (assuming I've counted correctly) plus over 100 savings accounts, 4 credit cards and some investment accounts left over from free investments I've had. 

There was me thinking that I had a lot 😂 it’s easily done though when trying to switch accounts. I don’t even want to know how many bank accounts I have closed on my credit file, last I checked I think it was heading towards 40 I think 😱 this surely can’t be a good thing. I just wish that credit files wiped after 3 years and not 6 years. A lot can change in 6 years. 

steven141

Kim_13 said:

steven141 said:

If banks started charging for every account, I would probably close a lot of my secondary accounts. 

I currently have the following current accounts:

Royal Bank of Scotland x 1
NatWest x 1
Ulster Bank x 1
Nationwide x 2
Lloyds Bank x 1
Chase x 1

I also have 9 savings accounts and 2 credit cards.

I know that this seems excessive but the NatWest and Ulster Bank accounts opened for the switching deal and I'm keeping them and going to use them in some way as an appreciation for my £600 I gained from NatWest Group. 

The rest all have their purpose in some way  

I'm a couple behind you.

Halifax into which I am paid and bills out (and they offer the facility to pay in a cheque via app.) 

Chase for spending.

Nationwide (closest branch, my only chequebook if a cheque is needed and my oldest account, receiving Premium Bond prizes.)
 
The others I have less of a need for: 

NatWest - They were my main account once upon a time, but I had a far better experience with Nationwide and switched out once the difference in age between it and Nationwide was minor. Rejoined in 2022 for the Digital Regular Saver and a switch bonus.

Metro - Switching in future, but that's optional, so I would find it less objectionable to have to pay or close. The others are either required for me to be able to manage my finances effectively or because of a stipulation by the bank.

Savings accounts... lost count.

I have my Royal Bank of Scotland account open for the reason of having had it a long time. I do like different banks for different things and if I just had one then I feel like I’d always feel like I’m missing out on something as I like the way that more than one works and it’s handy if one goes down like mentioned by someone previously.