Why Are Customers Charged A Monthly Fee To Have A Bank Account??????

Scousebird_2

Thomas_Crown wrote: »

The travel insurance included in the Barclays package will be very basic. I certainly wouldn't rely on that level of cover when travelling abroad on holiday.

It's provided by Norwich Union and is 'Worldwide Multi-Trip Family Travel Insurance'

One of the things that they cover for-as an example is Encaptulation off a mountain if you are injured or stranded during winter sporting activities

You call that basic??? lol-don't mean to laugh! I apologise!
Each to their own I suppose-i'd just call and check before you travel if in doubt!

If I spelt 'Encaptulation' wrong then i'm sorry and i'll book myself on a night course to learn English again!

PROLIANT

If a bank has a customer base of 1 million customers and never previously charged them then decided to levy a fee of say £10 per month, then the bank has just claimed £10,000,000 in clear cut profit every month, wow, so what does the customer get in return then?

Scousebird_2

PROLIANT wrote: »

If a bank has a customer base of 1 million customers and never previously charged them then decided to levy a fee of say £10 per month, then the bank has just claimed £10,000,000 in clear cut profit every month, wow, so what does the customer get in return then?

Fair point but I don't seem to remember FD being so high in the customer satisfaction rankings until now so is that charge in some way being 'given back' to the customer & is the bank using the charge to improve the customer experience is what i'm dreaming up in my mind?? Who knows eh!!

Whatever they're doing-they are doing it right clearly. Just a thought.

PROLIANT

Scousebird wrote: »

Fair point but I don't seem to remember FD being so high in the customer satisfaction rankings until now so is that charge in some way being 'given back' to the customer & is the bank using the charge to improve the customer experience is what i'm dreaming up in my mind?? Who knows eh!!

Whatever they're doing-they are doing it right clearly. Just a thought.

If I have interpreted your post correctly FD is referring First Direct? If so they will not give me an account, obviously I don’t hold a position high enough in society to qualify.

Meltdown_2

I have never paid any "direct" fees or charges to a bank for operating my accounts and I am sure that there are many on this forum in a similar position.
You are not seriously suggesting, are you, that these banks have not made a decent return on having me bank with them over the years?

gt94sss2

Scousebird wrote: »

Fair point but I don't seem to remember FD being so high in the customer satisfaction rankings until now so is that charge in some way being 'given back' to the customer & is the bank using the charge to improve the customer experience is what i'm dreaming up in my mind??

First Direct has always been at the top of the customer satisfaction rankings since it was launched in 1989 - hence their tagline about being the 'most recommended bank'

I suspect the purpose of their £10 charge - which few people actually pay and which is very easy to get around - was simply to encourage 'inactive' customers to either use their First Direct accounts more or to encourage them to close their accounts.

'Inactive accounts' can be quite expensive for a bank to maintain and I guess they take the view that if an account is inactive then those customers are unlikely to use FD more.. - as opposed to those on low incomes who do bank with them, where it is always possible their finances will improve and they will be more profitable for the bank in future (hence why its so easy to get around the charges)

This is likely to be especially the case with First Direct who have 24/7 UK only call centres, no queueing systems etc - hence their costs are likely to be higher anyway for what could be seen as a 'premium' banking operation.

I suspect the reaction to the charge also helped HSBC see what would happen if other banks introduced a charge for monthly banking in future and if so who much customers may be willing to pay (depending on court cases etc).

Regards
Sunil

dzug

You CAN use airmiles for things like cases of wine, days out, etc - you don't have to fly

But still better to switch to an account that has no charges and no airmiles.

Scousebird_2

Ta for that Sunil-fills me in a little there. We'll all have to wait and see I suppose xx

Aegis

moloch2910 wrote: »

I would like to know why I get charged a monthly "Account Fee" for having my bank account with Lloyds TSB??? They have sent me a letter in the last two days saying that my Account Charge will be going up to £7.95 per month. For this wonderful increase of 95p I get them to remind me of my contact telephone numbers and I also get Air Miles. One, I don't need my bank to remind me of who I call and two, I DON'T TRAVEL. WHY DO I NEED AIR MILES WHEN I DON'T TRAVEL?????

Are there any people that can help with me not paying the monthly "fee" or are there any other banks that don't charge you the fee for having the privelegde of having your account with them? I am sick of being charged a monthly fee for junk I don't need !!!!!!

PLEASE HELP ME :mad:

If you haven't been told exactly why the account is beneficial to you or that fee-free options are available, then I suggest you call up, tell them to downgrade you and inform them that you are planning on making a complaint due to being mis-sold a product that is clearly of no use to you at all.

robertjonesuk

Thomas_Crown wrote: »

The travel insurance included in the Barclays package will be very basic. I certainly wouldn't rely on that level of cover when travelling abroad on holiday.

please do not assume that barclays travel is very basic if you didn't check it out. i do have additions plus account and had a claim on travel insurance (which is not so basic) and also used rac breakdown cover last year 3 times and i was happy with the outcome.

please know your facts before you can tell that the cover is basic.