Is the era of free banking officially over?
Last week's announcement by Lloyds Bank would appear to have sounded the death knell for free banking in the UK with customers now being charged a monthly fee to have in place overdraft facilities. While the issue of "free banking" has been something of a myth in all honesty, it does look as though officially more and more customers will be charged a monthly fee to obtain access to banking facilities.
Many experts believed that the era of free banking ended many years ago with the vast array of UK banks bringing in additional charges for various services. When you compare the cost of banking today compared to the cost of banking 20 years ago there is no real comparison. When you also take into account that banks have been using your savings and your money to finance their own businesses then effectively you have actually been "charged" for banking services for many years.
While officially the banks will argue that you are only being charged for additional services there is no doubt that free banking is coming to an end. So now is the time to shop around for the best deals for you and pull away from the historic trend which many UK consumers have been involved in, i.e. staying with the same banking institution for years and years.
Nationwide protests over FSCS bill
The Nationwide building society has issued a stark warning to the Financial Services Authority with regards to the £250 million bill the society has been hit with for its share of the Financial Services Compensation Scheme. The scheme is being put together to ensure that deposits up to £50,000 are guaranteed thereby giving some more backbone to the UK banking system. However, the Nationwide buil...Read More
Germany put pressure on UK with total bank guarantee scheme
Slowly but surely we are seeing more and more European governments announcing full savings deposit protection schemes which will see savings protected in their entirety in the event of any bank collapse. This is putting pressure on the UK government to follow suit but there seems to be a resistance to such a scheme, well at least for the moment.
Gordon Brown and the opposition part...
Has the UK government blocked the closure of Cheltenham and Gloucester?
Only two months ago Lloyds bank was adamant that all 164 branches of the Cheltenham and Gloucester would close as the bank sought to reduce costs and slim down for the future. However, Lloyds bank has today released a surprise statement confirming that the company is going to revisit the potential closure of the Cheltenham and Gloucester branches and until the review is complete the operation will...Read More
Alistair Darling asks investment banks to plan for doomsday scenario
In a bizarre exercise it is believed Alistair Darling has requested that all UK investment companies should be made to plan for their future demise. This is on the back of the Lehman Bros collapse which caused significant problems in a number of investment markets with over 1.5 million positions left open. The idea is that UK banks will be asked to draw up plans in the event of their demise which...Read More
How has the Cheltenham and Gloucester fared so badly?
As many workers around the UK come to terms with the fact that the Cheltenham and Gloucester brand-name will be no more there is growing anger in the financial sector. Cheltenham and Gloucester is a financial institution which has been around for over 150 years and, until it came under the control of Lloyds bank, seemed set to prosper in the future. So what has exactly happened to the Cheltenham a...Read More