It is going to be the end of the road for free banking soon!?

Question

One of the major banks today has announced that they will charge £10 per calander month for there customers to have a current account (That is £120 per year). Now obviously monkey see monkey do, The others will probably follow suit. My question is...Do you think us brits are a bunch of wimps and will stand for anything. Why do we let ourselves get ripped off with everything. And what are your thoughts on being charged for having a bank account? Thank you.

It is strange how you ask a usefull question and only get about 12 answers. But yet if I asked a question regarding sex you get 5 times more answers. Says a lot about the morons on here.

Answer 1

sadly yes, free banking will soon be gone.

Answer 2

I've discussed this on a few threads today and have come to the conclusions that this could backfire in spectacular fashion.

I'm hoping that a few banks follow and announce charges - then one of the smaller places like Halifax or Allience Leicester declare that they won't charge - thus causing thousands of people to swap over.

It seems that since having to stop charging for ATM use the banks have been searching for an excuse to make more money. They face problems with illegal/immoral bank charges and stand to lose profits if they don't create another way to rip off the customer.

And lets all remember - this is all about profit - charge or no charge they still make a very healthy profit - this is just profit increase - we're not looking at any of them going bust if they don't charge!

Answer 3

Services, such as banking, in general are becoming "classed". All banks that offer these 'premium' offerings also have regular bank accounts with no charges. Their marketing is designed to make middle class or aspirational people feel they "need" a premium (fee paying) bank account. The alternative accounts are either hidden or presented as being less prestigious or targeted at poor people. While people blindly follow what the banks say and migrate to "premium" bank accounts, they will be ripped off. Often the extra benefits could be purchased elsewhere at less cost. The banks rely on consumers being lazy.

Answer 4

I just hope other banks don't follow. This will affect no end of people across the board, Pensioners in particular will be hit, the Government closing all the Post Offices where they draw their pensions etc, they have had to open bank accounts, and with the little pensions they get, it is absolutely absurd. It makes my blood boil.Yes, us brits do seem to stand for anything and everything, but then the human rights are not their for the likes of the majority of law abiding brits. It is about time that maybe we all stood together and let our voices be heard, the MP's that are supposed to represent us, don't listen, they make all the promises to get your vote and then do u-turns all over the place.

Answer 5

Bank staff and systems cost money, and that money has to come from somewhere. Until now, "free" banking has been effectively financed by the relatively well-off (who leave large balances in current accounts, and the bank creams off the interest) and the relatively poor (who go overdrawn and incur inflated charges as a result - eg £39 for an unauthorised overdraft).

I don't mind these charges coming in if they start paying a decent interest rate on balances and reduce their excessive charges for minor infringements: neither side can reasonably expect to both have their cake and eat it.

Answer 6

there is only a few people (15%) that would be effected by first direct, so I think this is a way of getting rid of those people that have a few pounds in the account.
There are many savings banks that would never dream about it such as ICICI's HiSAVE account, which pays a huge 5.45%, always staying at least 0.25% higher than the Bank Base. I think that brits do sit down, but I think there would be an unroar by people and and the government would get involved, such as FAREPAK problem (i know it isnt the same though but on the same lines)
Trust me if I was charged for having an account I will not stay-be under me bed!Most banks look at savings accounts as loss leaders, i.e. they are prepared to lose money as you will use other products, such as insurance and mortgages, loans etc.
So to answer your question in a word, NO!

Answer 7

I heard banks were going to start charging people for having an account with them, but £120 per year is extortionate.If that's the case i will switch to a building society, but they will probably follow the band wagon.
It's simply another case of rip off britain

Answer 8

god thats a bit much £120 a year! i have seen banking cost 1% of that which you withdraw e.g if you withdraw £200 you pay around £2 at most service stations on the motorway

i personally wont let myself into this charging for banking, and i think some banks may follow but some will decide not to

Answer 9

I bank with FD and after hearing the news this morning my thought was 13 years of relationship has gone out the window. But now I have seen the full breadth of it on the lunchtimes news it will not affect me. They are only getting rid of, as someone else said, the few people that have an account to pay in the odd cheque from Auntie Doris.

Answer 10

I'm not fussed, because I pay for my bank account anyway. I get free phone and gadget insurance, reduced overdraft fees, that kind of thing.

Actually, I find it quite funny that people are so outraged to be charged. I mean, the banks are looking after your money. Why should they do it for free? They keep your money safe so you don't have to keep it under the bed. They hand it over when you ask for it (ATMs, debit cards). They remember to pay your bills for you (standing orders, direct debits). They give you extra money if you're in a bit of a squeeze (overdrafts). And they give YOU money if you're in credit (interest). Why shouldn't they charge? They're not charities.

Saying that, I do think they've got it the wrong way round in this case. I think that low earners should get a free account. So no overdraft facility, no gadget insurance, no frills. Then once they consistently earn over a certain amount, they should get upgraded to a charged account with a few frills. Easy.

Answer 11

No. I think it safe to say that there will be at least one bank with enough commercial sense to see us disgruntled soon-to-be-ex-First Direct customers as a business opportunity for the time being.

I do understand a bank's dilemma though - it does cost money to run an account - but the customer perception (and with us customers, perception is everything) is that we are paying them for the priviledge of looking after our money.

My real beef with FD is that I need to pay in £1500 per month to retain free banking - I don't earn anywhere near that much - what they seem to be saying to me is that I am not a good enough person to remain a customer of theirs!