Thursday, May 8, 2008

Banks encouraging customers to move to fee-paying accounts and away from traditional “free banking”

Seven million bank customers hit by rises of up to 20% in account fees

Millions of bank customers are being hit with higher current account fees ahead of a possible cap on overdraft charges. An estimated seven million people who bank with Lloyds TSB, NatWest and Royal Bank of Scotland have been told their monthly account fees will go up. They all use increasingly popular "packaged accounts" which offer extra services such as holiday insurance and credit card security plans on top of the basic current account

Posted by jack c @ 02:08 PM (744 views)
Please complete the required fields.



8 thoughts on “Banks encouraging customers to move to fee-paying accounts and away from traditional “free banking”

  • … and Gordon Brown thinks he’s going to get the banks to stop paying big short-term bonuses and develop sustainable policies to help customers long term?

    Reply
    Please complete the required fields.



  • japanese uncle says:

    One thing I should really like to tell the British consumers is:

    Japanese banks certainly charge monthly fee, but it’s just 1or 2 pounds per month, and that in return for the quality of service totally incomparable with the British banks. If you call them, human voice will answer immediately, not the machine recorded voice or voice with often incomprehensible accidents. You don’t need to double check your bank statements, as they are error-free. The speed of their service is….. I won’t say any more.

    Another difference is, the CEO of the Japanese mega banks earn no more than 300K or 400K. If we are charged 10 pounds per month by the British banks, it’s simply because of the undeservedly high salary and bonus paid to their executives.

    Make no mistake!

    Reply
    Please complete the required fields.



  • JU, I think your appraisal of Japanese retail banks is a little bit too flattering perhaps.

    Reply
    Please complete the required fields.



  • I think the banks are expecting a deflationary period. Providing the services and cash storage facilities that banks do costs money so they have been getting that money from a combination of slicing a chunk of their earnings before paying your interest, and by being first in line at the money source so they can buy at the old value of the pound and sell at the new (thanks to money-supply based inflation).

    On the downturn, they need to pay for the cost of running a current account without inflation to help and with rapidly disappearing investment opportunities – so they simply levy a fee. IMHO they should have been doing that in the first place and we wouldn’t have this mess. Banks wouldn’t have been competing to be the most daring investors – they would instead be competing to provide the best service at the best price.

    This should all work out fine as long as the government stops the handouts and bailouts.

    Reply
    Please complete the required fields.



  • stillthinking says:

    The Japanese banks close their cash machines at 9pm in the evening and they aren’t open at all on Sunday. Maybe that is just Hokkaido bank but …
    Very good service in the branches though.

    Reply
    Please complete the required fields.



  • So those seven million punters will start shopping around until others follow suit?

    Reply
    Please complete the required fields.



  • I downgraded my bank account about 7 years ago from one that paid 8 or 9 pounds a month. If you ask me the fees are just another con – like extended warranties and the like.

    Stillthinking, if banks in the UK were to close their cash points it would simply mean you need to be a bit more organised if you want cash in your pocket. If the Japanese banks can do it without the country grinding to a halt anyone can. I really believe people in the UK need to start thinking for themselves rather than having life spoonfed to them.

    Reply
    Please complete the required fields.



  • When I lived in New Zealand, there wasn’t free banking. You got charged for everything including withdrawals from the cash point, etc. Although you did get a certain amount of cashpoint withdrawals free. The service was a huge amount better They didn’t have the huge bank charges and you could actually speak to someone in the branch. Of course I can’t see UK banks improving if they charge a fee or not.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>