The End Of Free Banking?

[youngmafbog]

"City watchdog clears way for end of ‘free banking"

No surprise to me, I recall saying this on thes pages in the past.  Time for people to start paying their way, too much 'free' stuff these days that is not free but paid for by others.

https://www.express.co.uk/finance/personalfinance/1877541/FCA-ends-free-banking

[Old_Geezer]

Free banking has to be an obligatory offered bank service since no one is allowed to demand cash from their employer. Otherwise it's just a con cooked up between government and banks to monitor the citizens and rip them off further.

 

More evidence of citizen abuse. We'll be rivalling Russia & China next at this rate.

[barry1010]

I remember the days when we were charged if we used cheques - there used to be a lot of fees attached to current accounts back in the day.  

[andres]

^^^Yes Barry, We used to pay for  banking accounts. I can remember that. Don't remember why the banks decided to drop the charges though.

[ToraToraTora]

It's funny really that we expect a service from the banks for free anyway. I can remember when banks charged it is no surprise that we may well return to that.

[davebro3]

It's not free really because they hold a lot of money in all types of accounts on which they earn interest.

[barry1010]

andres, I suspect it was a combination of so many wages being paid straight in to the banks instead of into little brown envelopes and the enormous competition from the building societies that suddenly started offering current account due to changes in the law - Building Societies Act 1986.

[fourteen85]

I recall a time when you had to keep a minimum (£50.00 in case of TSB) otherwise you paid charges

[barry1010]

That's always been the case, dave, but for a long time many current accounts have also earned interest.  Free overdrafts, too,  and no fees if you keep to the rules, although some accounts do charge a monthly fee. 

[ichkeria]

"It's not free really because they hold a lot of money in all types of accounts on which they earn interest."

That was my immediate thought 

[davebro3]

If the bank is paying you interest on an account you can be sure they will be earning more interest from it.

[zebo]

If the banks start charging us to use their product then I hope they cease bailing out gullible people who get ripped off by romance scams etc.

[douglas9401]

'Chiselling *** given licence to profiteer'

[youngmafbog]

//"It's not free really because they hold a lot of money in all types of accounts on which they earn interest."//

Simply not true, most have didly squat in them so the Banks cannot use it.  Plus they now have to have a fairly high overnight liquidity menaing more money sits 'dead'.  With most currant accounts the best they can do is a lquidity sweep(for any excess over the amount they must keep) and use it for overnight securities.

//Free banking has to be an obligatory offered bank service since no one is allowed to demand cash from their employer.//

Eh?  Since when have Banks been charities or have any control over how an employer pays their staff?

//We'll be rivalling Russia & China next at this rate.//

Well you post would look more Communist to me.  Surely charging is Capalist?

[youngmafbog]

I remmeber when I was in the US.  You could have two levels of service, a counter one or an ATM one.  For the Counter one there was always a fee, the ATM one was free if you kept $1500 in it.  That was in the late 90's and In worked for the Bank in question! No perks in the USA.

[barry1010]

I've just looked at my latest bank statement, it helpfully tells me how much I've 'earned' since opening in interest, cashback on certain direct debits and other bonuses attached to my current account.  It is several thousand pounds. Can't complain.

[ToraToraTora]

OG: "Free banking has to be an obligatory offered bank service since no one is allowed to demand cash from their employer." - How strange your thoughts are, no one is obliged to offer a free service or indeed any service at all.

[youngmafbog]

Could be more if you werent subsidising those that think Banks are Charities.

[tomus42]

These would be the same banks the taxpayer bailed out not so long ago after they'd gambled away all their money.

//Time for people to start paying their way, too much 'free' stuff these days that is not free but paid for by others.//

Completely agree.

[Gromit]

The tax payer saved most of them in the financial crash of 2008. They have used new technology to cut thousands of jobs and ditch thousands of branches in every town.

Pure greed by the banks, we should have let them die of their own incompetance, but they were too big to be allowed to fail apparently.