Wednesday, Aug 02, 2006

Could free banking be a thing of the past?

MSN Money: Is this the end for free banking?

A leading UK high street bank has warned that the reintroduction of charges for current account and credit card holders is inevitable, sparking concerns that free banking in Britain could soon be a thing of the past.

Posted by webmaster @ 08:36 AM (418 views)
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7 Comments

1. paul said...

There's a subtle irony in the fact that the Midland Bank was the first to scrap charges. The Midland Bank was bought by HSBC who are now looking to reintroduce them. This is bluster though - if HSBC introduce charges you'll have a shedload of customers looking to switch banks sharpish. I'd bet it's a bid to stop the introduction of rate caps and banning high penalty fees.

As denzil pointed out, google for the name of the HSBC Chairman "Dyfrig John" and click on the first link. Sums up everything there is to say about HSBC I reckon.

Wednesday, August 2, 2006 09:23AM Report Comment
 

2. Kingfisher said...

Who says HSBC current account is free at the moment (apart from the bank)?
With inflation at 2.5% and there net interest rate on their current account at 0.08%, I think that they are effectively charging you 2.42% on your money.
For example if you had an average balance of 1000 over a year, they would give you 80p in interest, but at 2.5% inflation you need 25 to break even, therefore they are already charging you over 24 per year.

Wednesday, August 2, 2006 09:30AM Report Comment
 

3. Distant_daz said...

At a time when these b******s are making record profits they want to find more ways of screwing money out of us....

Wednesday, August 2, 2006 09:37AM Report Comment
 

4. Merkin said...

good thing i just switched to lloyds tsb - effective today!

Wednesday, August 2, 2006 11:08AM Report Comment
 

5. uncle chris said...

Royal Bank of Scotland tried to charge me 5 a month on a graduate royalties account around 3 years ago. As soon as I said I wanted to close it they back-tracked. I don't think banks will have the nerve to introduce charges because people will just move their accounts and there are plenty of banks who will not charge. However, the greed of the banks and business in general does astound me. I really think it's time to introduce a permanent windfall tax to stamp down on excessive profits.

Wednesday, August 2, 2006 11:31AM Report Comment
 

6. Click said...


As distant daz said,

( making record profits )

How about the banks giving us the savers more interest on our savings ?

Wednesday, August 2, 2006 11:32AM Report Comment
 

7. Retiredbanker said...

Kingfisher,

You beat me to it with your comments.

However I am all in favour of large profits for the banks, and a strong and profitable banking sector is good
for this country ( and also for my pension; biased me? ).

Wednesday, August 2, 2006 01:10PM Report Comment
 

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