Proposals to end free personal banking.

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yorkshirechap

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I was listening to the radio and heard the head of something or other at Price Waterhouse going on about how charging for personal bank accounts would end the process of high overdraft and penalty charges taken from one person, subsidising the free bank accounts of another. It's a good thing and would lead to better banking services for everyone, so he says.

Several problems with this. It was not mentioned who actually commissioned PWC to research this issue. Secondly, it was also not mentioned that the banks use our cash as leverage to make absolutely astonishing profits on a daily basis. Lastly, pardon my cynicism, but I would not expect banks to reduce their penalty charges at all even if this goes ahead and indeed there was no mention of this. Also bear in mind, banks already charge, handsomely, for business banking.

I am an out and out capitalist, its the misrepresentation I cannot stand. Contrary to popular belief, the two are not inextricably linked. You do not have to be a liar to be successful in business.

I find the entire idea abhorrent unless the banks suddenly become entirely transparent on exactly how they utilise customer deposits for their own gains. It would shock most people I am sure.

Anyone agree/disagree?
 
i'm happy to pay for my bank account because i get loads of benefits chucked in with it so I can't complain really (i do work for a bank in IT so I get it at a discount, perhaps I'm biased)

Free banking as a concept is a bad idea though as it is bound to make the bank look at others ways to generate revenue (whether switching to a paid system will have any impact is another issue, but I believe it would have been a better starting point)
 
grumpy enough at stupid low interest.. as soon as they charge they can f**k the right off!
 
I already pay for my banking so this will make no odds to me, but with my banking package comes various benefits such as mobile phone insurance including false calls, it also comes with travel cover, but my main reason for having it is preferential savings and borrowing rates plus an arranged over draft etc...
 
Free banking! Whatever next?

I expect my bank to pay me every month for the privilege of being my bank ;).
 
You only have to see how they treated the ordinary shareholders of e.g. Bradford and Bingley - we got nothing out of them, absolutely zero
 
It's horlicks, this pops up every few years or so and it's never happened, never will. This time it's PWC who surprise surprise do most of their work for banks, saying they want to have charges in a clear and transparent banking system! but they are among the worst of the crop for obfuscating their business to make it impossible for Joe Bloggs to tell what is going on.

Scenarios to show why it will not happen..
Banks A B and C all want to start charging but who goes first? if bank A starts its customers will all leave for other still free banks, they lose.
If the banks get together and decide to do it on the same day, they go to jail because that's against the law, they lose.
No matter how many high street banks start to charge there will always be one that doesn't (think supermarket banks), they lose.
 
Mixed comments.

Does nobody feel strongly either way that they utilise the money you deposit to speculate with, in order to generate profits, yet now also seem to want us to pay them to do so....?

Ultimately, your money is at risk every day that it is on deposit and we don't see a penny of the profit generated in most cases.

I admit I'm not familiar with the exact source of the money they use to speculate, I'm not sure anyone knows really, but it is certain banks have failed due to bad trades using customer deposits.
 
No f*****g way am I paying to access my own money, not ever. There is nothing wrong with the current system (ideologically anyway, and I have been stung by thousands worth of charges over they years)

The whole point of a bank was they pay you interest for using your money to make themselves money and you pay them interest for using theirs. It's a nice simple idea that has been lost in these days of big city finances and one that rapidly needs to be impressed upon the people in charge of these establishments.
 
Um, I pay my bank. They pay me interest. I make a profit (i.e. they pay me more than I pay them) therefore I am happy to pay the charges.

I don't understand this "they should be paying us" thing - after all it would cost a lot more to keep the money in the house. Find a deal you like (a package of benefits for a "cost") and give them your business. Don't give it to somebody else.
 
Mrs Nod gets free business banking and IIRC they pay her a sum (small but they still pay her) annually for her business. It's the card machine company who are a PITA at the moment - keep sending her "reconditioned" machines which don't work... Bring back the old carbon type wiper things - they never went wrong (well, it was quite easy to muck up a slip or 2 but that was always user error rather than equipment malfunction!)
 
Dave1 said:
http://www.halifax.co.uk/bankaccounts/current-accounts/reward-current-account/

;)
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Yes. I understand that some banks pay people to bank with them. What I don't understand is the belief that banks should pay people to bank with them. Or that they need to do it via payments like the Halifax do (as opposed to freebies, inclusive bundles and good old fashioned interest). I got bored looking for their interest rate, but if it approaches the 3% I get for a £2 a month fee I'll switch tomorrow.
 
Do you really think you get free banking? No, you don't get anything for free... the 0% interest free at DFS... its built into the cost of the sofa.
 
cambsno said:
Do you really think you get free banking? No, you don't get anything for free
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I know I do, I have a current account and credit card from the Halifax, the current account pays me £5 a month as long as I deposit funds in and pay my DDs, I pay no other fees on the account. My credit card is a 0% card.
 
I think people with balances below a certain amount could/should be charged as there money does little for the bank put against the cost of providing the services, say 1k.
 
So once again those with a bit of money think those with very little should pay more.
 
cambsno said:
Do you really think you get free banking? No, you don't get anything for free... the 0% interest free at DFS... its built into the cost of the sofa.
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I thought it was kickbacks from the finance house. I forget which one went bankrupt, but one of the notorious sofa shops got to the point where the sofas were really only a way of selling a credit agreement.
 
munch said:
So once again those with a bit of money think those with very little should pay more.
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I think that people that the banks are not making money from should expect to be asked to pay for services like any business. It's like a professional photographer being asked to do a shoot for just one picture, would he provide the service for free?
 
I pay for my business account so why should personal accounts not be charged
 
Mr Bump said:
I pay for my business account so why should personal accounts not be charged
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You get and use a lot more services than 99.99999% of private accounts would. You get to claim your bank charges against tax where a private individual cannot.
 
firstly my personal banking isn't a business. Secondly it is very difficult in this day and age not to have a bank account, most government payments are paid directly into a bank/building society account.
 
munch said:
firstly my personal banking isn't a business. Secondly it is very difficult in this day and age not to have a bank account, most government payments are paid directly into a bank/building society account.
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I guess this is not in itself a reason for being "free" as you could say it is very difficult not to have food, yet food is not free lol
 
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Whilst food not being free is true, if I buy some food I have something tangible a bank charge is just another charge. And when you have little money then having to pay for something that for many years has been "free" would certainly miff me off.
 
Steep said:
You get and use a lot more services than 99.99999% of private accounts would. You get to claim your bank charges against tax where a private individual cannot.
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what extra services do i get then for my £6 a month?
 
munch said:
Whilst food not being free is true, if I buy some food I have something tangible a bank charge is just another charge. And when you have little money then having to pay for something that for many years has been "free" would certainly miff me off.
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It is a charge but it is s service too. You have nothing tangible after a train ride?

You know your money is safe, and you get a card to take cash out of the wall when you like.
 
At the end of the day the bank use your money to lend to people so that's how they make money and the average customer account makes zero interest. So if folk think they are really getting free banking ignorance is bliss :-)
 
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I think we all agree that you don't get "ought for nowt" and I am fully aware how banks work. It is the fact that we have had "free banking" for personal accounts for many years now. I am one of the lucky ones who don't go overdrawn pay off my credit cards every month, so I am surprised they haven't already asked me to leave.

Lets be honest do we really believe the banks will reduce overdraft charges to totally offset any charges they may make on current accounts?
 
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