Free banking to be axed, warns leading bank

[z3b3dy]

I ain't against banks making a profit, it is a free market, they can do as they please. It is up to the customer. I personally pay for my bank account, because the service & extras I get, I think are worth the fee. It's just the people claiming that the banks aren't making any money on 'average' customers don't seem to see the hidden charges!

I agree with you that a lot of people are very naive about charges and hidden fees but then all companies are very good at hiding them in very small print. The question I think though is are they charges for profit or the costs of running a service/business?

So you've never payed a withdraw fee, or never paid a CC fee, e.g. when booking tickets, holidays etc.? Admittedly, it is possible, but highly inconveinent as it means you'd have to pay by cash/cheque for many things! I personally don't mind paying, even if just for the fraud guarantee you get with most CCs.

See my point above, are you paying for a service or for a charge. We now live in a society where transactions should be instantaneous to give us gratification. By enabling customers to have credit cards banks are assuming some kind of risk from the customer, look at the banks now reporting in increased exposure to bad debts. They have to be able to counter these costs. Does that make it fair to pay for another persons debts and wrongs, I think I'd rather not go there. Also there are costs of running such a system, when I use my bank card here in Kiev should it be right that the transaction should cost me nothing even when that transaction has to be authorised back in London over some hi-tech system for the transction to take place.

Nationwide isn't a bank, it's a building society.

OK you have me there but they still have charging structures like banks so does that make them different?

 

[Samtheman1k]

See my point above, are you paying for a service or for a charge. We now live in a society where transactions should be instantaneous to give us gratification. By enabling customers to have credit cards banks are assuming some kind of risk from the customer, look at the banks now reporting in increased exposure to bad debts. They have to be able to counter these costs. Does that make it fair to pay for another persons debts and wrongs, I think I'd rather not go there. Also there are costs of running such a system, when I use my bank card here in Kiev should it be right that the transaction should cost me nothing even when that transaction has to be authorised back in London over some hi-tech system for the transction to take place.

But the bank charges the retailer about 1-1.5% (3% for AMEX I think) of the goods value whenever you pay by CC. This charge is simply included in the price of whatever you are buying as the retailer has to take this into consideration when setting their prices. So you are already paying to use your CC, it is just that the charge goes via the retailer, rather than direct to the bank!

 

[z3b3dy]

But the bank charges the retailer about 1-1.5% (3% for AMEX I think) of the goods value whenever you pay by CC. This charge is simply included in the price of whatever you are buying as the retailer has to take this into consideration when setting their prices. So you are already paying to use your CC, it is just that the charge goes via the retailer, rather than direct to the bank!

But if you pay by cash for example this charge doesn't come off your bill, so your paying it to buy anything rather than just when using your credit card. Though I yes I realise that there can be an additional charge on top for some items if you're paying by credit card.

 

[Samtheman1k]

But if you pay by cash for example this charge doesn't come off your bill, so your paying it to buy anything rather than just when using your credit card. Though I yes I realise that there can be an additional charge on top for some items if you're paying by credit card.

So the people paying by cash are subsidising the people paying by CC!!!

 

[z3b3dy]

So the people paying by cash are subsidising the people paying by CC!!!

I suppose in the end we're being screwed whichever way we look at it. I'll go back to my hut and look for grubs, well maybe instead a park down the road with some Ukrainian champagne might help my sorrows better!

 

[Skiddley]

Love it.

By coincidence, I've been a HSBC customer for 15 years and just pulled all of my accounts from them as they are uncompetitve and they wouldn't do anything to improve things.

Best bit is, I did some shopping around on current acount deals and LLoyds where offering a nice one, when I explained the deal to my Account Manager, she said 'That sounds like a very good deal, think I'll change too'.

Doh...I'll get my coat.

 

[crashuk]

if banks start to charge ill just ask to get paid in cash.

 

[dirtydog]

if banks start to charge ill just ask to get paid in cash.

Fine if you're on benefits, not so fine for the rest of us

 

[crashuk]

cash all the way, actually i work part time and if banks start to charge then i wont have a bank account.

 

[dirtydog]

Nah I can't see it happening though The banks would have customers leaving in droves - to one of their competitors who didn't charge for routine transactions.

 

[HEADRAT]

Maybe when we pay they'll actually open the branches when people can get to them e.g. after work and in the evening

HEADRAT

 

[crashuk]

they are all init together, i bet they have a little hut in a tax free zone, where all the major players meet up and plan how to gaim money.

 

[bbreezeuk]

so i take it the premium accounts will have charges and the basic debit card accounts will still be free, correct me if im wrong

 

[crashuk]

from what i heard everything will be charged and you have to prove your on a low income to get free banking.

 

[locutus12]

http://www.dailymail.co.uk/pages/li...n_page_id=1770&ct=5&expand=true#StartComments


i guess repayments overchrages had an effect on the banks, now they are gonna charge people for holding accounts with them.

lol, they wouldnt be allowed to do this... people would go nutts about it just as they did when the banks wanted to charge for ATM`s. plus their would be one bank who wouldnt charge and every bugger would just move to them instead. also its the daily mail... now where did i put that salt tub...

 

[Borris]

from what i heard everything will be charged and you have to prove your on a low income to get free banking.

Really? From what I heard, if you have green eyes and a mild limp, you are entitled to a week long supply of chocolate mice.

 

[crashuk]

chocolate mice i want

 

[locutus12]

chocolate mice i want

i really need to read threds fully...

 

[Vixen]

I very much doubt that there will be no free banking available to people as a result of cutting charges for sending out letters. Sounds like scare mongering to me and if places do try to charge everyone a monthly fee places like Sainsburys will take advantage and increase their banking share.
.

I doubt that, considering all of the supermarket "banks" are actually subsiduaries of major UK banks. Tesco Personal Finance, for example, is part of the RBS group.

Right now account charges don't affect me, as staff accounts are free, so I'm not too bothered.

 

[PinkPig]

No, look at this properly - you have asked for a service and that service may cost you money. Think of it like a phone, tv service or your internet connection and it makes sense...

I don't agree with you at all there - banking isn't a service in the same sense as TV or phone - both of those involve you paying to receive a service, it's strictly a one way thing. A bank account involves you investing in a bank, giving them money with which they can do as they choose. They can and do make a profit on that. In exchange, you get an interest payment - for easy-access current accounts, you get a very low interest rate in exchange for regular access to bank services, for a savings account you get a higher interest rate. Charging the consumer to invest money seems horribly unfair as far as I'm concerned.