[shoestring25]

it is being suggested that bank accounts will no longer be free in the future and they will start charging a monthly fee say £10 for having a bank account. wondering what people's opinions are on this?

im totally against it because you must have a bank account to get your wages paid into and to pay bills and take money out. there is no alternative to a bank account and as such this idea of charging comes across as a tax.

[dc8900]

+1, Hope we can still maintain free current accounts

[THE AMATUER]

I blame Martin Lewis :-).

[JagoPlasma]

Not gonna happen. There will always be free bank accounts as people will flock to them. Hell I'd set up my own free banking service!

[nwgarratt]

They would have to do a minimum balance that the account is over for most of the time. My account is barely more than £50 ever. Any money going in doesn't stay in for long. How can I expect to be charged £10 when there would be so little in the account.

[bosque]

Maybe they'll only accept customers who have sufficient funds to pay the fee.

[Mr Incredible]

Originally Posted by JagoPlasma

Not gonna happen. There will always be free bank accounts as people will flock to them. Hell I'd set up my own free banking service!

Or the banks could charge for the accounts then attract customers by offering better interest on the current accounts.

If anyone thinks their bank account is "free", you're mistaken. The banks make your money work for them!

[dc8900]

Originally Posted by Mr Incredible

If anyone thinks their bank account is "free", you're mistaken. The banks make your money work for them!

And yet for some reason I'd rather they do that than charge me £x/month for an account

[Miss Mandy]

I thought that all banks had to offer a free bank account of some type? I can't see that changing. Even if its just a basic account to allow payments to go in and direct debits to go out.
For me personally being on JSA, there is no way I would be able to afford £10-15 a month to pay for a bank account, but if I haven't got a bank account I can't get my payments or pay my bills. I can't see how charging for all bank accounts would work for people on benefits or on a low income.

[Mr Incredible]

Originally Posted by dc8900

And yet for some reason I'd rather they do that than charge me £x/month for an account

Probably with you on that one!

But think how much money banks have saved since the advent of internet and online banking. I probably write just one cheque a year now, whereas before I used to go through a book every 6 months or so.

[THE AMATUER]

Originally Posted by Miss Mandy

I thought that all banks had to offer a free bank account of some type? I can't see that changing. Even if its just a basic account to allow payments to go in and direct debits to go out.
For me personally being on JSA, there is no way I would be able to afford £10-15 a month to pay for a bank account, but if I haven't got a bank account I can't get my payments or pay my bills. I can't see how charging for all bank accounts would work for people on benefits or on a low income.

There are calls for free banking to end.

Momentum gathers to end free banking - Telegraph

Lots of banks are imposing minimum amounts you have to credit to get free banking, First Direct for example charge a £10 monthly fee if you deposit less than £1,500 a month. I notice most of the free accounts now pay zero interest as well and some have withdrawn things like the free overdraft buffer they used to give.

I think its a matter of time before they all charge. Santander are pushing people into their new 123 current account, that has a £2 monthly charge, no doubt that will increase over time.

[Houghsx]

So quick question then. What do the banks do with all the money that's in peoples accounts.

[dj_padd]

Originally Posted by Houghsx

So quick question then. What do the banks do with all the money that's in peoples accounts.

Use it to lend to other people

[Beany31]

A lot of account have minimum turnover e.g. 500 to have an account

[GAZBEROTTEN]

Originally Posted by THE AMATUER

There are calls for free banking to end.

Momentum gathers to end free banking - Telegraph

Lots of banks are imposing minimum amounts you have to credit to get free banking, First Direct for example charge a £10 monthly fee if you deposit less than £1,500 a month. I notice most of the free accounts now pay zero interest as well and some have withdrawn things like the free overdraft buffer they used to give.

I think its a matter of time before they all charge. Santander are pushing people into their new 123 current account, that has a £2 monthly charge, no doubt that will increase over time.

Id like to look at the positive this will have for those in the post office/newsagent sector and those who refuse to use bank accounts and giros instead. All this will do is make more people use Giros and then the post offices will get record amounts of customers cashing there giros and buying stuff from there branches that have newsagents.

This will result in newsagents with post offices see a massive increase in profits and an increase of jobs in the post office/ newsagents sector

It will also generate more VAT with those who buy Tobacco,Alcohol and any other stuff that has VAT. More money in the coffers and an increase in the amount of newsagent/post office jobs out there will actually benefit this country during times of high unemployment.

If the banks want to charge people to use bank accounts and lose a lot of business and benefit another sector at there expense let them

And other businesses that rely on customers to use direct debit will suffer from this or go bankrupt if this happens which will eventually result in massive job losses in the banking industry

Originally Posted by Miss Mandy

I thought that all banks had to offer a free bank account of some type? I can't see that changing. Even if its just a basic account to allow payments to go in and direct debits to go out.
For me personally being on JSA, there is no way I would be able to afford £10-15 a month to pay for a bank account, but if I haven't got a bank account I can't get my payments or pay my bills. I can't see how charging for all bank accounts would work for people on benefits or on a low income.

It wouldn't not everyone can afford to pay £10 -£15 per month. And even then the banks would have to show justification for the charge and what they would be doing with your money. And i dought the banks would survive if there customers closed there accounts down and went with giros.

[Phil57]

Originally Posted by GAZBEROTTEN

Id like to look at the positive this will have for those in the post office/newsagent sector and those who refuse to use bank accounts and giros instead. All this will do is make more people use Giros and then the post offices will get record amounts of customers cashing there giros and buying stuff from there branches that have newsagents.

This will result in newsagents with post offices see a massive increase in profits and an increase of jobs in the post office/ newsagents sector

It will also generate more VAT with those who buy Tobacco,Alcohol and any other stuff that has VAT. More money in the coffers and an increase in the amount of newsagent/post office jobs out there will actually benefit this country during times of high unemployment.

If the banks want to charge people to use bank accounts and lose a lot of business and benefit another sector at there expense let them

And other businesses that rely on customers to use direct debit will suffer from this or go bankrupt if this happens which will eventually result in massive job losses in the banking industry

.............................and Gaz puts his foot in ........................again!!

[GAZBEROTTEN]

Originally Posted by Phil57

.............................and Gaz puts his foot in ........................again!!

Phil i have a simple question for you which i am hopeful you will respond to and be polite.

Why is it a big deal? You where not forced or compelled ,to read,reply to this so whats with the negativity?

Its not like any one has been seriously offended by it. If you don't like my post move on and find something else. Its a difference of opinion only.

Gaz

[Desmo]

Subscribes for more Gaz wisdom.

[Phil57]

Originally Posted by GAZBEROTTEN

Phil i have a simple question for you which i am hopeful you will respond to and be polite.

Why is it a big deal? You where not forced or compelled ,to read,reply to this so whats with the negativity?

Its not like any one has been seriously offended by it. If you don't like my post move on and find something else. Its a difference of opinion only.

Gaz

Do you think before you post?

Selling tobacco and alcohol is positive?
Bankruptcy is positive?
Massive job losses is positive?

[IronGiant]

Originally Posted by Phil57

Selling alcohol is positive?

Lots of Vodka Alcohol Tax on that

[JagoPlasma]

Originally Posted by Mr Incredible

Or the banks could charge for the accounts then attract customers by offering better interest on the current accounts.

If anyone thinks their bank account is "free", you're mistaken. The banks make your money work for them!

I know that probably wasnt aimed at me. but I have never thought that a bank doesnt make money from my money.

My Bank account IS "free", it does not charge me any money for the services it provides me.

In return for

• Collecting my money from my employer
• Keeping my money safe
• Giving me easy access to my money when i want it

My Bank can do whatever it likes with my money as long as I get back what I put in, I don't even expect interest from them!

But if they want to start charging me for this service then they can either Lock my money in a vault and not touch it or I will go to someone who will give me a free account.

Banks have shown for a long time they do not need people to pay for an account. Even Richard Branson had to backtrack on his idea of charging!

[Mr Incredible]

Originally Posted by JagoPlasma

I know that probably wasnt aimed at me. but I have never thought that a bank doesnt make money from my money.

My Bank account IS "free", it does not charge me any money for the services it provides me.

It was a bit of a tongue in cheek post!

[dc8900]

Originally Posted by GAZBEROTTEN

make more people use Giros and then the post offices will get record amounts of customers cashing there giros and buying stuff from there branches that have newsagents..

Bit of news for you mate, Giros haven't been around for nearly a decade now seeing as Girobank merged with Alliance & Leicester in 2003

Girobank - Wikipedia, the free encyclopedia

[niceguy235uk]

I bank at Coutts and i have always paid for the account.

However, it does offer excellent service and is worth it IMO.

[Houghsx]

Originally Posted by dj_padd

Use it to lend to other people

Exactly, they use our money to make themselves money. To pay a charge for them to use our money is a bit of a joke tbh.

[shoestring25]

rather than charge you a monthly fee for having an account why dont they charge you per transaction that way they make more the more you use it, and others that dont use it as much dont pay as much. this pay as you go way would make things alot fairer

[pandemic]

I don't like the idea of a charge per transaction, I'd most likely end up using my debit card for getting money out the ATM than pay per transaction.
Personally, I don't envisage 'free' accounts coming to an end, not while the public own a large percentage of 2 of largest banks in the UK.
Although if it did come to an end I'd rather pay a fixed monthly fee than, pay for each transaction.

[shoestring25]

£10 is alot for me considering i make about 7-8 transactions in a month thats why i would rather be charged per transaction . most of my stuff is on credit card which isnt a bank account

[Desmo]

Originally Posted by shoestring25

rather than charge you a monthly fee for having an account why dont they charge you per transaction that way they make more the more you use it, and others that dont use it as much dont pay as much. this pay as you go way would make things alot fairer

Just like a business account

Those little fees can soon mount up though

[imightbewrong]

Originally Posted by Houghsx

Exactly, they use our money to make themselves money. To pay a charge for them to use our money is a bit of a joke tbh.

Not from current accounts really - as the money can go out in an instant - very hard to lend. A bank that only had current accounts would not be able to stay in business - they really need you to take out their other products too.