End to 'free' bank accounts?

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Barclays' new chairman Sir David Walker plans to undertake a root and branch review of the way the bank operates, it was reported today.
Sir David told The Sunday Telegraph he agrees 'in principle' with customers paying to use current accounts and the end of the free banking model.
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Report

Would this be rubbing salt in the wound?
 
I would agree if you hadn't used Barclays as an example.
 
Why? (Incidentally it's not an "example" it's a news report).
 
As Barclays was one, if not the only bank to refuse government money, I don't see any wound for them to rub salt in.

Now, if you want brine for RBS, TSB etc. pour away!



I don't really care if it's a link, news report etc.etc. It is the example used as the basis of the thread.
 
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Ah I see, yes fair comment ... I tend to lump all banks together, with possibly one exception the Co-op.
 
How else do you expect them to pay the bosses bonuses. (Which of course, they so richly deserve).
 
Since Barclays are reeling from the rate fixing scandal, I wouldn't exactly class them as squeaky clean.

The end to free banking is bound to come, most countries don't have. If we want greater transparency in charges, then monthly banking fees are the obvious way to go.
Banking never used to be free, its a relative new thing (well, 1980s).

A
 
Headless Lois said:
Since Barclays are reeling from the rate fixing scandal, I wouldn't exactly class them as .......

A
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Indeed they are not, but they did not rush to the trough of public money given away so freely by the Gordon fella!

Apart from that, banking has NEVER been free!
 
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You give money to the banks, with that money they make money by loaning it out to people on the idea of charging fee's for the liberty.

And when it was crossed with investment banking (part of the big bank polava in the first place) it made a lot of money, and lost a hell of a lot on quick buck, short term high return ideas.

Should they be charging to keep peoples money?

**** NO!!!!

You would be just as well investing in gold coins, even with fluctuation in value you never really loose out in the long run.
 
Forbiddenbiker said:
There is a simple solution, move to a bank that gives you what you want.

Supply and demand works, but only work if we act. :thumbs:
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Every bank over here charges for the privilege of them using your money to make more money. I wish there was one I could move to. There are a few accounts you can get that are 'free' if you jump through several hoops, hopefully a bit of competition will improve things. But, seeing as the big Aussie banks are the most profitable in the world, I can't see it happening anytime soon.

I pay $5 a month for a current account that makes 0% interest. :bonk: Took a bit of getting used to after moving from the UK.
 
The idea of banks charging for the privilege of gambling my money away really grates with me. I think I'd go back to stashing it in a shoebox under the bed if there's not a free option! :lol:
 
Jayst84 said:
Every bank over here charges for the privilege of them using your money to make more money. I wish there was one I could move to. There are a few accounts you can get that are 'free' if you jump through several hoops, hopefully a bit of competition will improve things. But, seeing as the big Aussie banks are the most profitable in the world, I can't see it happening anytime soon.

I pay $5 a month for a current account that makes 0% interest. :bonk: Took a bit of getting used to after moving from the UK.
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Interesting I didn't know that, most profitable right now you mean during the crash, or for a decade and more.

We've got new banks opening with new ideas about putting the customer first in responce to the dishonest banking of the passed.... I have been asuming you guys could be seeing something similar by now? ...Is the population up in arms about the banks over their, or easily AstroTurfed away from the facts like over here? :gag:

TriggerHappy said:
The idea of banks charging for the privilege of gambling my money away really grates with me. I think I'd go back to stashing it in a shoebox under the bed if there's not a free option! :lol:
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lol Well worded, I so agree.
 
Forbiddenbiker said:
Interesting I didn't know that, most profitable right now you mean during the crash, or for a decade and more.

We've got new banks opening with new ideas about putting the customer first in responce to the dishonest banking of the passed.... I have been asuming you guys could be seeing something similar by now? ...Is the population up in arms about the banks over their, or easily AstroTurfed away from the facts like over here? :gag:
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Not sure mate. I think they've always been up near the top. CBA (Commonwealth Bank possibly the most ironic name for a bank ever) are huge, along with ANZ, NAB and Westpac, they make up the 'Big 4' who own Australia, well, the bits the mining companies don't own anyway.

Australia all but dodged the crash on the back of the insane amount of money in ore mining and close trade ties with China.

People have been getting a bit more vocal about the general evilness of the banks, but they will always be protected as their profitability is seen, rightly or wrongly, as propping up the economy. They just say, "Hey! Look at the UK and USA, you don't want to end up like that do you?". :shake: Well, no we don't, that's why we'd like change, but that bit doesn't seem to get through.

The big banks have been having everything their own way with rates the last couple of years. The habit now is to raise rates when the Reserve Bank does (fair enough) but then leave them there, or only pass on a small percentage when the Reserve Bank cuts rates again. They're also taken to randomly hiking rates off their own backs if the Reserve Bank doesn't do what they want. About one step short of printing their own money.

ANZ are in court today for a class action claiming their fees for going overdrawn, etc are far in excess of the actual cost. Same as a few of the big ones back at home not too long ago. So hopefully that goes somewhere, a drop in the ocean really though.

A couple of smaller banks have been growing recently, I should probably look into them more.

Oh, cash machine fees as well, that's another thing to get used to. Only free if you use your own bank's cash machine. Use another one and you'll be charged circa $2 per transaction, even to check your balance, like at those third-party machine in pubs.
 
Mikesphotaes said:
Apart from that, banking has NEVER been free!
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The operation of my current account is free, in that the bank gets no money from me to do so. It pays interest on credit balances that is greater than the bank of England base rate, so they pay me to operate my current account.

I am happy with this arrangement. I remember before I was old enough to have a bank account that my parents used to have to keep a certain credit balance in order to get free banking on their current account - I don't think it was much (about £30 or so) but it was effectively dead money, as nothing could be done with it.
 
I wouldn't pay to have a bank account when they were using my money to make money from. I don't think a lot of people would.

They have also forgotten once you start paying for a service everyone will demand a far higher standard of it. Majority of banks fall way short in customer service and attitude terms.

If they start imposing charges I can see people switching or just sticking their money elsewhere. Paypal or amazon could start offering free banking potentially. That could kick the banks into touch. I'd imagine the post office or other government institution would offer free banking as charges would hit the poor the most. Leaving them to suffer at the hands of banks really isn't on.

Apart from the Co-Op is there an ethical bank and is even the co-op ethical?
 
Jayst84 said:
Not sure mate. I think they've always been up near the top. CBA (Commonwealth Bank possibly the most ironic name for a bank ever) are huge, along with ANZ, NAB and Westpac, they make up the 'Big 4' who own Australia, well, the bits the mining companies don't own anyway.

Australia all but dodged the crash on the back of the insane amount of money in ore mining and close trade ties with China.

People have been getting a bit more vocal about the general evilness of the banks, but they will always be protected as their profitability is seen, rightly or wrongly, as propping up the economy. They just say, "Hey! Look at the UK and USA, you don't want to end up like that do you?". :shake: Well, no we don't, that's why we'd like change, but that bit doesn't seem to get through.

The big banks have been having everything their own way with rates the last couple of years. The habit now is to raise rates when the Reserve Bank does (fair enough) but then leave them there, or only pass on a small percentage when the Reserve Bank cuts rates again. They're also taken to randomly hiking rates off their own backs if the Reserve Bank doesn't do what they want. About one step short of printing their own money.

ANZ are in court today for a class action claiming their fees for going overdrawn, etc are far in excess of the actual cost. Same as a few of the big ones back at home not too long ago. So hopefully that goes somewhere, a drop in the ocean really though.

A couple of smaller banks have been growing recently, I should probably look into them more.

Oh, cash machine fees as well, that's another thing to get used to. Only free if you use your own bank's cash machine. Use another one and you'll be charged circa $2 per transaction, even to check your balance, like at those third-party machine in pubs.
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Nice insight thanks... We can all be sure they are working towards the same common goal to suck us harder, that's clear I think, like we live in a Murdock world media wise anyway so its plain to see the bombardment everyday....buy buy buy your way to happiness...get an account with free apps and music downloads, your clueless and boring without us they shout!!

Its up to us the consumer to take a stance and say no thanks and wave our money about demanding better. If we all changed our banks as often as we erm ... upgrade our hardware! They'd be forced to accommodate, and we'd get the sort of service we want ... collectively we would be heard, or rather felt, in their wallet..even better right!

I mean, lets face it everyone. They dont give a hoot about us, nothing nada, like have you died yet, hooray ..get them costs, resell! hooray hooray round and round the roundabout we go. kerching kerching... :gag:

Has anyone looked at the US recently...the banks have sucked so hard its fallen apart, a city went bankrupt! lots of the populations skint, as in poverty and the economy's been stagnant for so long its lost its powerful world credit ratings that kept it at as the top trader in the first place....kinda ironic this is all caused by the big banks who in effect got their bluff called by China and Asia markets, amongst others ...its like 'oh, so you can't actually pay for your last call, and yet you want to play on cos you've printed some more money ...yeah right!'
 
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National Australia Group bought my old bank ( Clydesdale ) it was a terrific bank before they got hold of it. I had a bank manager that was a real person who made calculated decisions on approvals for any loan I wanted based on his knowledge of me and my personal circumstances. Not some software written by accountants. I have moved to another non fre bank but at least they paid me £100 quid to move to them and I am about to move again as another one is offering another £100 quid to move to them... Ozzie banks are like all banks. Greedy and stupid. The evidence of that is there everytime you turn on the telly with ads for payday loans every five minutes at 3000% interest. ( Why do we pay that ? because its quick and easy and you are guaranteed to be approved.
 
Mikesphotaes said:
Apart from that, banking has NEVER been free!
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I've never paid for any of my banking other than the odd occasion I've gone overdrawn. I reckon I've paid £4 in overdraft fees. My bank pays me £5 a month for having their current account.:thumbs: all they ask is I pay in £1000 a month, it doesn't even have to stay there, I can move it to other banks or savings accounts anytime I like. If I don't pay in £1000 a month, I don't get my £5, but I certainly don't pay them anything.
 
Mikesphotaes said:
Apart from that, banking has NEVER been free!
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Define FREE please.

If you mean do I personally have to spend any money to operate my current account, then yes it is FREE, as I have never paid a single penny for my account.

I will admit that I should be moving my account to one like nilagin to get the £5, but I just can't be bothered, stupid really.
 
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acetone said:
Define FREE please.

If you mean do I personally have to spend any money to operate my current account, then yes it is FREE, as I have never paid a single penny for my account.

I will admit that I should be moving my account to one like nilagin to get the £5, but I just can't be bothered, stupid really.
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Don't worry, I've been banking with them for years and I've only just upgraded the account so they pay me again. When I first banked with them they actually paid interest on the current account.
 
Mikesphotaes said:
As Barclays was one, if not the only bank to refuse government money, I don't see any wound for them to rub salt in.

Now, if you want brine for RBS, TSB etc. pour away!



I don't really care if it's a link, news report etc.etc. It is the example used as the basis of the thread.
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I don't know why Barclays is always treated as if is a beacon of great risk management. It too needed bail out funds, but it just didn't rely on the UK Govt for the funding. Did it get itself into a mess...? Yes, absolutely and that is what's important, not how it was rescued.
 
I've been arguing in my day job (financial services) that the old banking model is dead. Banks were able to report huge profits due to their proprietary risk taking activities funded cheaply through customer deposits. Now those proprietary risk taking activities are being clamped down upon and are harder to execute, banks need to squeeze more out of their retail customers, other than just offering low long term interest rates. This is also why mortgage rates are no way near BoE base and accounts are being charged for. The loss of one income stream is simply being replaced by another.
 
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Barclay's are in the middle of the libor falsifying...they are guilty as heck! The evidence is thick, but will the CPS and whatnot procecute, thats the question on most people minds..

...a hundred years ago we would have hung them along side the murderers, I mean their crimes harm far more people than just a murderer does right?!

hsuffyan said:
I've been arguing in my day job (financial services) that the old banking model is dead. Banks were able to report huge profits due to their proprietary risk taking activities funded cheaply through customer deposits. Now those proprietary risk taking activities are being clamped down upon and are harder to execute, banks need to squeeze more out of their retail customers, other than just offering low long term interest rates. This is also why mortgage rates are no way near BoE base and accounts are being charged for. The loss of one income stream is simply being replaced by another.
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:thumbs:
 
srichards said:
I'd imagine the post office or other government institution would offer free banking as charges would hit the poor the most. Leaving them to suffer at the hands of banks really isn't on.
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Herein lies a large problem. Those who don't have to worry about every penny will be ok and most likely not worry about the charges, but those who are on low incomes or benefits will be hard hit as for them every penny really does count and can make a huge difference.

It's also exasperated for those like myself on benefits as there is no alternative these days, it used to be that we could get a giro sent to us and cash it at the post office allowing us to deal in cash alone if we wished, but the DWP a few years ago made it so we had to get bank accounts and have our money paid directly into the account fortnightly.
 
I have a paid bank account and it has a lot of benefits for me, I have access to loans at preferential rates and the same with savings accounts, I can get savings accounts that offer about 4 percent above the levels that people who don't pay for there accounts not to mention perferential rates for my overdraft etc and other tertiary benefits...it's all about getting the account that is right for you and for me my paid account offers exactly what I need from my account :thumbs:

Matt
MWHCVT
 
We are with Barclays and already pay for certain aspects of our banking as some self employment there. Not really a problem for us but I agree it will have an impact on some and think certain accounts should stay free if income under a certain amount.
 
MWHCVT said:
I have a paid bank account and it has a lot of benefits for me, I have access to loans at preferential rates and the same with savings accounts, I can get savings accounts that offer about 4 percent above the levels that people who don't pay for there accounts not to mention perferential rates for my overdraft etc and other tertiary benefits...it's all about getting the account that is right for you and for me my paid account offers exactly what I need from my account :thumbs:

Matt
MWHCVT
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matt, just out of curiously what are the terms around those accounts/deposits that offer 4% above market rates. do you have to tie the money up for 12 months or more?
 
hsuffyan said:
matt, just out of curiously what are the terms around those accounts/deposits that offer 4% above market rates. do you have to tie the money up for 12 months or more?
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Well without going into too much detail but I have one particular account where I pay in 250pm and then at the end of 12 months (£3,000) it pays out the 3k plus 8%AER :thumbs: where as people that don't have the paid service only have access to the same savings account but at 4%AER :thumbs:

Matt
 
I was quite surprised to find 'free' banking services in this country, after living in South Africa for 30+ years where every transaction incurs a fee. You pay to draw money from your own bank's ATMs, and if you have the temerity to draw from a 'foreign' ATM - belonging to any other South African bank - the charges are eye watering. There was a judicial enquiry into this a few years ago, resulting in recommendations to abolish these fees, but all the banks ignored them them because they were just recommendations and not law.

My UK bank is constantly urging me to upgrade to a paid account, but I haven't taken them up on this. The benefits just don't have any value for me at the moment, and I understand that the government are introducing new regulations to compel the banks to explain where clients stand in terms of their eligibility for these benefits.
 
MWHCVT said:
Well without going into too much detail but I have one particular account where I pay in 250pm and then at the end of 12 months (£3,000) it pays out the 3k plus 8%AER :thumbs: where as people that don't have the paid service only have access to the same savings account but at 4%AER :thumbs:
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I hope the fee is less than £5/month...
 
I have account that the bank wants me to upgrade to a paid service for "just" £12 per month !!

In return they'll give me a load of tripe that i'd never use...... can't say I'm in a hurry to take them up on it.
 
Your bank already makes money from you. If you are in credit, they lend out or invest your money to make a profit. If you are in overdraft, they charge you interest.

Charging a fee simply to run an account is somewhat analogous to a shop charging you, not only for the goods you purchase, but for the privilege of going through the door in the first place.
 
Forbiddenbiker said:
Barclay's are in the middle of the libor falsifying...they are guilty as heck! The evidence is thick, but will the CPS and whatnot procecute, thats the question on most people minds..
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They are going to get some comeuppance, at least in the US. It seems the bankers mates don't run the Government there like they do here.

http://www.bbc.co.uk/news/business-19276506

Seven banks, including HSBC and Royal Bank of Scotland, are to be questioned in the US for alleged manipulation of the Libor inter-bank lending rate.

Barclays, Citigroup, Deutsche Bank, JPMorgan and UBS have also received subpoenas from the attorneys general of New York and Connecticut.
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