free banking

levineg10

Do you think it is likely that Banks will end free banking and start to introduce monthly or annual charges just to have a bank account?

[Deleted User]

levineg10 wrote: »

Do you think it is likely that Banks will end free banking and start to introduce monthly or annual charges just to have a bank account?

Would think so, aren't we one of the last countries that offer it for free.
Lived abroad a few years ago, and it was xx Euros to have the account, then xx Euros to have a debit card, xx Euros to have a cheque book, you had to also pay for online banking, and also a few for telephone banking (on top of charge of the call).

At the end of the day, banking is one of the last "free things" we have (I can already see people answering back by saying we pay by giving them our salaries, and savings, they make money .....) but yes I do think we ll all be charged one day.

dunstonh

I wouldnt be surprised if they imposed a minimum balance to retain free banking if they lose the bank charges case. Although a number of the banks have restructured their OD charges to a way that they believe cannot be successfully challenged so there may be no need to look at if differently to at present.

Milarky

dunstonh wrote: »

I wouldn't be surprised if they imposed a minimum balance to retain free banking if they lose the bank charges case.

It's more likely to be minimum account activity than a balance (Arr, I remember that £100 I left with NatWest as if it were yesterday) since a number of banks actually offer interest free overdrafts - either promotional or ongoing - which implies allowing you bank with them with less than nil money.

But if they impose minimum funding requirements a lot of people will simply get around that as now - by drawing cash and immediately re-crediting it. That will just leave the 'f3ckless and stupid' (or 'profitable') customers to milk - people who could easily save themselves tons of cash by following simple rules - but don't

natweststaffmember

Free Banking???? you think we have free banking? Sorry, normally I do make comments when natwest is mentioned, but I have been around long enough to know that free banking is a myth which is now being used as the scare mongering if the OFT win the test case. There is no such thing as "Free" banking.

natweststaffmember

The debate over free banking can be seen on almost every bank charges site. Here on MSE there is many examples already on the forum so expanding on for example, interest rates on bank accounts, interest rates on savings accounts based on the bank of england base rate, the OFT case itself where the RBS QC, stated about the "free" banking formula, ie that some people charges so others do not have to. The debate, from my perspective being almost 2 years on charges sites, is an old one to have so I am sure others will have opinions on free banking. I cannot add further because I do not believe there is such a thing as free banking.

ShelfStacker_3

Al_Mac wrote: »

Please expand.

You should, technically, be earning 5.25% on your money from the Bank of England. By using a typical current account, you earn 0.1%; the other 5.15%, which really should be rightfully yours, goes to the bank as a fee for their services.

YorkshireBoy

ShelfStacker wrote: »

You should, technically, be earning 5.25% on your money from the Bank of England. By using a typical current account, you earn 0.1%; the other 5.15%, which really should be rightfully yours, goes to the bank as a fee for their services.

I don't see it that way, and never have when this topic has been discussed before.

I get paid the last Friday of the month, and by the 5th of the following month all my DD's have been paid and my current account balance is £1 (because I've transferred what's left to a better paying account*).

The bank kindly give me an overdraft facility, which is nearly 4 x my monthly take home pay, and a credit card with a similar limit.

I remain firmly of the opinion that I enjoy free banking.


* I'll concede I lose 2 days interest (pennies) on the amount transferred, but shouldn't do from May this year.

mister_bojangles

Banks already think of ways of making money (which of course, they would not term 'charges') - informing customers of their bank balance by text (£2.50 p/month), 'upgraded' acct (£8 p/month), overdraft (£10 p/month) et al.

In a competitive market, it's up to discerning customers to remain savvy.